How the SGX Nifty live works and provides insight into the larger stock market in India
- Guest Posts
- May 10, 2019
Your success in trading stocks depends on several different factors. One of them is the exchange you use for your trades and how it may affect your investments in another stock market. Over the past several years, the SGX Nifty has become highly popular for reasons that go beyond what it can directly provide to investors.
Understanding how the SGX Nifty live works and provides insight into the larger stock market in India will help investors, particularly foreign investors make the most out of their investments.
What is SGX Nifty?
Standing for the Singapore Stock Exchange, this is a derivative of index trading known as Nifty. The futures of Nifty are traded for 16 hours on the Singapore exchange while the Nifty itself is traded for six and a half hours on the NSE Stock Market, which is located nearby in India.
One advantage of the SGX Nifty is that investors who are not able to participate directly in India’s market trade can go through SGX Nifty. By using the SGX Nifty price, investors can capitalize on opportunities that otherwise might not be available.
As you can see with the SGX Nifty live chart information, it is a volatile market. However, while that means more risk, there is more opportunity depending on the news of the day and other factors that can really drive up or drive down prices. For the opportunistic investor, going with the SGX Nifty live offers excellent opportunities both directly and indirectly thanks to its close association with the larger Indian stock market.
How SGX Nifty Live Works for You
For investors who have interests in Singapore and especially India, the SGX Nifty offers considerable opportunities to take advantage of the rises and falls in the stock market. This is why so many investors have turned to this particular exchange.
Ties: Since the SGX Nifty is basically the same version of India’s Nifty, it means that the two are closely tied together. Plus, since it is traded on Singapore’s stock exchange, there is broader market available which allows more investors in.
Direction: For those interested in the direction of India’s stock exchange, seeing the SGX Nifty live offers early indications. This is because of how closely tied the markets are to each other and the fact that the SGX Nifty opens before the stock markets in India.
Lower Margins: Since the margins of the SGX products are less compared to that of the NSE, the risk is somewhat lower as well. This means that you may have less to gain, but also less to lose which means you can take a greater risk with less chance of losing what you have.
Keep in mind that the SGX Nifty chart is far more volatile compared to the Indian Nifty. This is because both markets are influenced by different factors with India’s Nifty being more stable. In the end, the SGX Nifty offers a great place for foreign investors to put their money into Nifty Futures. Plus, you can get indications of where the larger stock market in India may trend which provides valuable insight into your investments.