Day-66 | What is intraday trading | Index trading | NIFTY | Option Trading

What is Intraday Trading

Taking position only for Intraday Trading with proper SL & Target. for intraday trading we prefer to trade in NIFTY & some Blue chip stocks with the help of Spread (Credit/Debit).To know more about intraday trading click here

Key take away from  Today’s Trade :-

  1. NIFTY opened in a previous day Range
  2. As expected it was No action day
  3. Decided to Trade on the Long side (Post RBI Policy)
  4. Sold 22550 PE & Bought 22500 PE for hedging,
  5. In same duration,NIFTY 22400 CE was Trading around 196 and closed around 206.

NIFTY Pre-Market for intraday trading

Our Intraday Strategy

credit spread

Intraday Trading Chart

Performance Sheet

Outcome of Today’S Trade

Credit Spread

What is Credit Spread ?

If you are selling higher Delta strike(ATM/ITM) & buying lower (OTM/Deep OTM) for hedging & marging benefits.

What is Spread #

A spread is a strategy that involves taking opposite(or different) positions in same instruments (it will conists of positions that move in the opposite Direction with respect to change in market conditions.

What is NIfty or Index #

Nifty is the components of 50 top company (out of 1600 company) listed on NSE. Nifty represents or cover almost all the sectors of Economy

Option trading in NIFTY/Index with the help of Credit Spread

Now we have clear understanding of NIFTY & Credit Spread,Biggest advantage of trading  Nifty with the help of options(credit spread) gives you an easy access to Risk Management System & Position Sizing Model.
Key Featues of Credits Spreads:-

1)Marging Benefis (Hardly requires 30,000 to 40,000 to create NIFTY ATM Spread),
2) Hedging benefits,(Provides security against Market volatility),
3) Quite helpful in Risk Management & Position Sizing,
4)Being a Directional Strategy gives mauch better Risk & Reward opportunity.

 

 

 

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