Mean Reversion Futures

Futures Intermediate NIFTY Futures BANKNIFTY Futures FINNIFTY Futures Stock Futures

Expects price to return to average after extended moves

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Quick Reference

Strategy Type Counter-Trend / Mean Reversion
Market Outlook Expects price to return to average after extended moves
Risk Profile Moderate to High - trading against momentum can be risky
Reward Profile Consistent smaller profits with occasional larger losses
Time Horizon Intraday to 2-5 days typically
Capital Requirement Moderate (₹1,50,000 - ₹5,00,000 for adequate margin and buffer)
Margin Type MIS for intraday; NRML for overnight mean reversion
Best Used When Range-bound markets, overextended moves, after climactic selling/buying, markets at statistical extremes

When to Use This Strategy

Range-bound markets, overextended moves, after climactic selling/buying, markets at statistical extremes

India-Specific Notes

Lot Sizes

NIFTY 25 units per lot (₹50 per point)
BANKNIFTY 15 units per lot (₹15 per point)
FINNIFTY 25 units per lot (₹25 per point)
Stock Futures Varies by stock

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