Nifty Futures is a financial utensil in which futures contracts are held on the basis of S & P Nifty index which is the guideline of NSE. In the Nifty stock market, trading is done on the basis of the underlying index S&P CNX NIFTY. In other word Nifty is an index and its value is calculated on the basis of shares of 50 companies which it represents. On the basis of this index value, nifty is traded on exchanges as nifty future contracts. There are two types of settlements in nifty contracts, the MTM (Mark to Market) which happens on a continuous basis at the end of each day, and the final agreement which happens on last trading day of the future contract.