How to do Bank Nifty intraday Option Trading: Nifty option Tips

options intraday trading

Options intraday in India is a short-term strategy that involves buying and selling securities within one day. A guy can keep a position open for:

  • Seconds;
  • Minutes;
  • Hours, but in any case it closes before the end of the day.

Initial concepts of this trading

To begin with, it will be appropriate to review all the basics. After that, we break down all aspects of it and tell you how to work with it correctly.

It is a type of trading, in which transactions are concluded during the session and are also closed during the same session. That is, regardless of the outcome of the transaction, all positions must be closed at the end of the day. This is monitored by the strategist, or the broker closes all transactions a few minutes before the end of the session.

Option is a contract that gives the buyer the right, but not the obligation, to buy or sell a specified asset at or before a specified price. Like bonds, an option is a security. It is also a legally binding contract between the parties with strictly defined terms and features.

This is a defined group that always includes any banking area that is fundamentally liquid and heavily capitalized. The selected places are then changed on the National Stock Exchange. The importance of this bank is that it provides a benchmark for investors to assess the market performance of the Indian banking sector.

Many experienced guys of this sphere deal with it during the day and close all their actions closer to the evening.

What is Nifty and how does it work?

One of the most important points of how exchange functions it is to understand such terms as:

  • NSE;
  • BSE.

Both of these important points help us to understand the whole theoretical part, and understand how to be skillful.

  • BSE stands for Bombay Stock Exchange, and NSE is the National Stock Exchange.
  • It is also worth taking apart their individual products.
  • The NSE has a ratio called Nifty.
  • And the BSE has a formula written as Sensex.

It was coined for the two words “national” and “fifty.” The word fifty is used because the mark consists of 50 actively changed products from various sectors. It is also known as CNX or NIFTY 50. It is owned and operated by Indian Index Services and Products (IISL), which is wholly owned by NSE Strategic Investment Corporation Limited. This thing consists of fifty companies from 24 different sectors.

The methodology for calculating it is similar to both the related S&P Sensex (BSE 30) and other Standard & Poors methodology products. In particular, three key indicators are used:

  • Merchandise capitalization of participants;
  • Free-float capitalization (with an approximate number of shares outstanding);
  • The basis itself.

The calculations are simple and don’t cause problems even for an untrained user.

How to invest here?

We already know that it is a major component of the whole Indian vend. It constitutes a huge proportion of all the features in the exchange, namely 50%. From all factors mentioned above, it follows that it is an indicator of how the NSE is performing in everything, and therefore, the Indian economy as a whole. If it is falling – this means that the whole vend is falling down, and if it is growing – this means that the all is growing in value. Knowing this is one of the main points of understanding how to do it.

If you decide to invest in NSE, it won’t be the same as investing in Nifty intraday. After investing, all you have to do is watch the post and “collect the fruits” from the entire set of top 50 stocks. Now we break down all the existing ways of investing and try to choose the best of them.

  • The first way to invest is spot trading. This means that you can trivially buy yourself a script, which is the easiest and most straightforward way. Roughly speaking, this is the same as the purchase of shares of any company. After the purchase you have to wait until the prices grow in price on the exchange, and you can make profit from it.
  • The second way is also very common: derivatives trading, which are a kind of financial contracts that derive their value from the underlying asset. Based on this, these assets can be any of those listed on the websites, such as commodities, currencies, etc. Also both parties agree in advance on the date of future execution of a contract. The profit in this example is derived from speculations on the immediate value of the asset.
  • The third way which gives us an understanding is clue funds. This is a type of mutual fund where a portfolio is designed to increase exchange exposure. Such conditions are created by creating an appropriate portfolio that fits all parts of the index so as to provide the broadest exposure to the entire world.

In recent years, it has been rapidly gaining momentum, attracting more and more people from around the world. Investors invest in it very rapidly, either directly or through sign funds. For this reason, if you are interested, now is the right time to try a new direction for investment.

Methods and advantages of actions in daytime

These things are strategies in which a person opens and closes positions within one day. The main advantage of this strategy is the optimal ratio of advantages with a large leverage and the absence of requirements for a large investor’s capital (minimum margin). All of them are spent trying to catch fluctuations, the size of which can vary from a few pips to several hundred pips.

An important, we can say, the main advantage, because of which users choose it, is the ability to place close protective stop-losses, which significantly reduces the risk of transactions.

Among the obvious disadvantages is the need for sharp reactions – to closely follow the development of this situation.

An effective and reliable strategy is all about making the right decisions in the face of constantly changing factors.

For effective and efficient income you must:

  • Have a reliable and fast equipment (computer);
  • A complete program for merchandise analysis (we recommend ATAS);
  • High-speed Internet access;
  • enormous patience and self-control;
  • an analytical mindset;
  • Constantly improve your skills.

The main thing in intraday options is to close all positions by the end of the day. There are two main methods: scalping and checking on the news.

  1. Scalping is the simplest, but quite effective method. It consists in setting a certain threshold for closing a position. For example, if a person sets a 5×5 plan for closing positions, then if the trend changes by 5 pips in plus or minus, the owner closes the position in any case. In the first situation he makes a profit, in the second situation he makes a loss. When scalping, it is important to choose the right moment to enter this theme. Usually this is done with a confident advance of the trend. In this case, the position quickly reaches the necessary level of profit and is closed, or the one behind the screen puts a Stop Loss and monitors the further movement of the trend, moving the Stop Loss if necessary. As soon as the trend changes direction, the position is closed.
  2. The second method, which is no less common, is checking on the news. In this case, the person must closely monitor all financial and economic news that can cause a trend advance, especially a positive one. The calendar of important events and the table of influence of these events on currency rates help in this.

This kind of action also allows the use of other strategies, but practice shows that they are less effective and are suitable only for experienced guys who have developed their own style.

It involves scalping at a high pace and is often associated with nervous tension, so it requires a high level of endurance and self-control. The main goal, like many other strategies, is to choose the right moment to enter a team.

Best brokers

To effectively follow this stuff, you need to choose an effective forex platform.

For this, you need a combination of inexpensive conditions, combined with a feature-rich platform, with great tools.

Price isn’t everything. That’s why many are willing to pay more to get the tools they need to get money more efficiently.

eToro

eToro is one of the best platforms. A relatively new but fast-growing brokerage firm with more than 5 million men in 140 countries. Unlike the vast majority of brokers, Etoro strives to keep its clients engaged in the process, while educating and preparing them for the challenging and stressful atmosphere of currency

All the different types of analysis, news flow, charts and indicators can be very confusing and intimidating for beginners. Etoro aims to solve all these problems, with a user-friendly platform and an innovative attitude towards this field.

All pros and cons of eToro:

ProsCons
When buying real shares, eToro acts as a sub-broker with full regulationTaxes must be calculated and paid independently
Ability to buy fractional share contractsQuotations of price suppliers are not always casual prices, there are slippages
Ability to connect to the autosurvey of trades of the best Managers

Tickmill

Tickmill is one of the young companies, successfully operating since 2014, providing newbies with a “new way of style” (quoted from the official company website) with low spreads, STP and DMA technology capabilities, transparent flow, absence of requotes, and innovative solutions.

Their platform offers access to more than 80 instruments with spreads from 0 pips and the lowest commissions.

This company has the necessary regulation, and also offers its clients to try themselves in free training, risk-free options, crypto signals, safety of funds, as well as constant communication with technical support.

Advantages and disadvantages of Tickmill:

AdvantagesDisadvantages
UK regulation and high customer securityNo stock to trade
Good service and support
Best conditions

Binomo

This broker has clients from 133 countries and is one of the most popular brokers for people from India, Brazil, Indonesia, Vietnam and Turkey.

Binomo was founded in 2014 and is owned by Dolphin Corp, based in St. Vincent and the Grenadines. With more than 887,470 active men per day and over 30,000,000 successful deals per week, Binomo is one of the largest brokers.

Binomo uses its own platform for all of its fans. The platform uses SSL to ensure that all data is encrypted and protected, so your funds are always safe under all conditions. Security of customer data is crucial, as it determines how well Binomo can protect financial information.

In terms of assets, Binomo has a choice that is comparable to others. At the highest level of scalping and e.t.c., you have access to 49 different assets that cover a range of asset types. Having a diverse selection of assets allows you to determine exactly what you are most comfortable in the place.

Binomo offers a wide range of assets, including:

  • Commodities
  • CFD
  • Currency pairs
  • Commodities

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