Option trading tricks india
The world of share market is full of surprises, and therefore one should always be ready to face the unexpected. Nevertheless, with proper planning and discipline one can taste success in the long run. There are many formats available when it comes to trading, and Intraday Trading is one of them. Like the term suggests, it is a kind of trading when the shares are bought and sold on the same day itself.
No wonder, the risks involved in this kind of option trading tricks india is a little higher than the conventional ones. But, if you play by the rules, you can surely achieve success. There are some Intraday techniques that you can learn in order to improve your performance in the field of Intraday Trading.
Some of them have been mentioned below. When you are not so skilled at something, it is better to seek help from the professionals and experts. In this regard, there are many institutes that offer training courses on Intraday Trading and other sorts of trading as well. Through such courses, you will be able to empower yourself with option trading tricks india knowledge and skills required for smart trading.
Newbie should learn from the experts first, and then they should start investing. Other than the above said exchanging traps, here are a couple of more regular exchange and venture traps that you can take after to accomplish best Intraday trading strategies:. As a trader, your aim should be staying away from holding positions overnight. In order to enhance your chances of making a profit, it is better to trade rather than putting all your money on just couple of scrip.
No matter how many numbers of scrip sind binare optionen serios have with you, if you see the price of the scrip breaking then it is better to take an exit. This will keep you away from incurring huge losses. It has been seen that safe option trading tricks india traders often square off or sell their scrip when the price of the same is 50 percent of the position. This very technique can be used for lowering down the risks involved.
After you have placed your money on the scrip, you should wait patiently to see if the price of the scrip is close to the 2 nd target; in case it is not then you should square off during the time of closing.
Usually, it is better to place your money on the stocks that feature a strong base, rather than risking your money on the undervalued ones. Coming up with a suitable formula is quite essential in the field of stock trading. You should always opt for the companies that feature a good record of paying dividends, rather than opting for loss-making firms.
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What is an Option? Suppose you have bought an option of shares of ABC Company at a strike price of This option gives you a right to buy shares at INR before contract expiry. The seller is under an obligation to sell shares to you at INR whenever asked for.
The option seller is thus under an obligation to execute the contract. Terminologies used in options: It is the transaction price which is decided by the exchange. A pre-defined period when the option option trading tricks india expire. This predefined period is last Thursday of every month for Indian stock markets. You can settle the contract even before this period. Explained option trading tricks india case study Exercise day: It is the day when the option is exercised. It is the price of the stock underlying asset in the cash market.
At the money ATMIn the money ITM and Out of the money OTM are the three terms which are used to describe the relationship between the options strike price and the price of the underlying asset stock. This is a scenario when the options strike price is exactly the same as option trading tricks india price of the stock in the cash market.
This is the break-even point i. This is a scenario when for a call option; the strike price is below the stock price and for a put option the strike price is above the stock price in the cash market. This is a profit zone for our position if the option is exercised. This is a scenario when for a call option trading tricks india the strike price is above the stock price and for a put option the strike price is below the stock price in the cash market.
This is a loss making zone for our position if the option is exercised. They provide huge returns if the view proves right.
It is recommended to always opt for a ITM option. In options trading, there are 3 contracts that option trading tricks india open at any point in time. Bullish Premium to be paid: INR 10 Strike Price: Total Investment made for one lot: Any price movement of the spot above would yield us profit. If at all till the expiry the spot stays belowthen the option would make a loss and the maximum loss would always be equal to the total premium paid i. Option trading tricks india the spot rallies abovesay the premium goes up to say Since an option is a right given by the seller to the buyer, the buyer has the right to exercise that right.
In the above case we sold the option and the profit was In the above case study 1, the CALL option seller would have received the premium of from the option buyer initially. This is the maximum money that he could make. If the spot rallies like it rallied above then the losses of the option seller are unlimited now.
If the option is exercised, the losses are tremendous. Bearish Premium to be paid: Any price movement of the spot below 90 would yield us profit. If at all till the expiry the spot stays above 90, then the option would make a loss and the maximum loss would option trading tricks india be equal to the total premium paid i.
If the spot breaks below 90, say 70 the premium goes up to say In the above case study 3 the PUT option seller would have received the premium of from the option buyer initially. If the spot falls below the break-even point as it did above, then the losses of the option seller are unlimited now. Important points to note: Please do not be creative! As the stock price moves in the cash market, the option price also moves. Hence stop loss for options should always be followed in the cash segment only.
If stop loss is triggered in cash segment, exit your option position also. If you see profits and can square-off your position, go ahead! But when it is falling, it falls very fast.
There is option trading tricks india to be a bull market between today option trading tricks india Send your queries to: Understanding Options What is an Option?
This option gives the buyer the right to BUY. You generally buy a CALL option when you have a bullish view on the stock. This is same as going LONG in futures. This option gives the buyer the right to SELL.
You generally buy a PUT option when you have a bearish view on the stock. All options that can be exercised Explained ahead on or before the contract expiry are called American options. All stock options in India are American. All options that can be exercise only on contract expiry are called European options. In India, options on the index i.
In options trading, there are 3 contracts that are open at any point in time 1. Option trading tricks india To Outperform Over Years: Weekly Market View Market View: We offer best stock market tips for beginners in hindi. You can get top share trading tips in India with us. Terms Of Service Disclaimer. Site best viewed in Google Chrome in X Resolution.