How does GIFT NIFTY operate? – Industry Insights – beragampengetahuan – Beragampengetahuan

Theoretically, a derivative is a contract on the underlying, whose price (or premium in case of options) should fluctuate based on how the underlying moves, and especially so with futures contracts which don’t have Greeks.

So why is it that GIFT NIFTY contract can be open when NIFTY50 index constituents are not trading in cash market? What is the logic here? And what decides it’s movement if it’s not the underlying index at that point in time?

Is futures price a mathematical derivative of the index price? It is whatever people are willing to pay for the futures contract right. Not sure how it works.