Trading Nifty futures is a popular way to invest in India’s stock market with leverage. But before jumping in, you need to know how much capital is required to trade Nifty futures safely. This guide explains everything—margin requirements, lot sizes, brokerage costs, and risk management tips.
Understanding Nifty Futures
What Are Nifty Futures?
Nifty futures are derivative contracts based on the Nifty 50 index.
They allow traders to bet on the future price of the Nifty index.
Traded on the National Stock Exchange (NSE) and settled in cash.
Why Trade Nifty Futures?
✅ Leverage – Control large positions with a small margin.
✅ Hedging – Protect your stock portfolio from market downturns.
✅ Liquidity – High trading volume ensures easy entry and exit.
How Much Money Do You Need to Trade Nifty Futures?
The money required depends on:
Nifty Futures Lot Size
Margin Requirements
Brokerage & Other Charges
Nifty Futures Lot Size
1 Nifty Futures contract = 50 shares of the Nifty index.
If Nifty is at 22,000, the contract value is:
50 × 22,000 = ₹11,00,000
Margin Requirements
Since futures trading involves leverage, brokers require a margin deposit (a percentage of the contract value).
Types of Margins in Nifty Futures:
Initial Margin (IM) – Minimum deposit to open a trade.
Set by NSE Clearing Corporation (varies daily).
Typically 10%-15% of contract value.
Example: If Nifty is at 22,000, margin = 12% of ₹11,00,000 = ₹1,32,000.
Exposure Margin (EM) – Extra buffer to cover volatility.
Usually 3%-5% of contract value.
Example: 5% of ₹11,00,000 = ₹55,000.
Total Margin = IM + EM = ₹1,32,000 + ₹55,000 = ₹1,87,000
Margin Changes with Market Conditions
In high volatility, margins increase (to reduce risk).
Brokers may charge higher margins than the exchange minimum.
Brokerage & Other Costs
Brokerage Fee – ₹20-₹50 per trade (flat fee) or 0.01%-0.05% of contract value.
Exchange Charges – ~0.003% of turnover.
GST – 18% on brokerage & fees.
STT (Securities Transaction Tax) – 0.01% on sell side.
Example:
If you buy 1 Nifty futures lot at ₹11,00,000 and sell at ₹11,20,000:
Brokerage (₹40 per side) = ₹80
STT = 0.01% of ₹11,20,000 = ₹112
Total cost ≈ ₹200-₹300 per trade.
Can You Trade Nifty Futures with Less Money?
Option 1: Trade Mini or Micro Nifty Futures
Mini Nifty (10 shares per lot) = 1/5th of standard lot.
Margin required ≈ ₹30,000-₹40,000.
Micro Nifty (5 shares per lot) = 1/10th of standard lot.
Margin required ≈ ₹15,000-₹20,000.
Option 2: Use a Discount Broker with Lower Margins
Some brokers offer intraday leverage, reducing margin needs:
Intraday Margin (5%-8%) = ~₹55,000-₹88,000 for 1 lot.
Overnight Margin (12%-15%) = ~₹1,32,000-₹1,65,000.
⚠️ Risk Warning: Lower margin = Higher leverage = Higher risk of losses.
Example: Trading Nifty Futures with ₹2 Lakh Capital
| Scenario | Nifty Price | Lot Size | Contract Value | Margin (12%) | Profit/Loss (100-Point Move) |
|---|---|---|---|---|---|
| Long Nifty Futures | 22,000 | 50 | ₹11,00,000 | ₹1,32,000 | +₹5,000 (50 × 100) |
| Short Nifty Futures | 22,000 | 50 | ₹11,00,000 | ₹1,32,000 | -₹5,000 (50 × 100) |
Key Takeaways:
A 100-point move in Nifty = ₹5,000 profit/loss.
With ₹2 lakh capital, you can trade 1 standard lot safely.
If Nifty moves 200 points against you, you lose ₹10,000 (5% of capital).
Risk Management Tips for Nifty Futures
Never Trade Without Stop-Loss
Set automatic stop-loss at 1%-2% of capital per trade.
Example: If trading 1 lot, set SL at 100 points (₹5,000 loss).
Avoid Overleveraging
If you have ₹2 lakh, don’t trade more than 1 lot.
Higher leverage = Higher risk of margin calls.
Track Expiry Dates
Nifty futures expire on the last Thursday of the month.
Roll over positions before expiry to avoid settlement.
Follow Market Trends
Use technical analysis (support/resistance, moving averages).
Watch global markets, FII flows, and economic news.
Frequently Asked Questions (FAQs)
Q1. Can I trade Nifty futures with ₹50,000?
Yes, but only Mini or Micro Nifty (not standard lots).
Standard lot requires ₹1.3L-₹2L margin.
Q2. What happens if I don’t have enough margin?
Broker may square off your position (forced exit).
You could lose more than your initial deposit.
Q3. Which brokers offer the lowest margin for Nifty futures?
Zerodha, Upstox, Groww offer competitive margins.
Compare intraday vs. overnight margins before choosing.
Q4. Is Nifty futures better than options?
Futures: Higher leverage, simpler pricing.
Options: Limited risk (premium paid), but time decay.
Conclusion
| Trading Style | Capital Required | Recommended Lot Size |
|---|---|---|
| Standard Nifty Futures | ₹1.5L-₹2L | 1 lot (50 shares) |
| Mini Nifty Futures | ₹40K-₹50K | 1 mini lot (10 shares) |
| Micro Nifty Futures | ₹15K-₹20K | 1 micro lot (5 shares) |
Final Tips:
✔ Start with smaller lots if you’re a beginner.
✔ Always keep extra funds for margin calls.
✔ Use stop-loss to protect your capital.
Trading Nifty futures can be profitable, but risk management is key. Start with a demo account, learn the basics, and then trade with real money.
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