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
Highlights of the Today’s Trade
- Expecting shortcovering after Gap down opening
- Sold 22000(ITM) PE & Bought 21900 PE for hedging purpose
- Trade totally went against me & given loss of 1342
- In the same duration 21900 CE given negative return of 55 % (154 converted into 59)
NIFTY Pre- Market view for 19 March ( available on Front Page)
Our intraday trading strategy :-
NIFTY intraday Chart (19 Mar)
Outcome of the Trade
Trading Karma Performance Sheet :-
What is Credit Spread in Intraday Trading ?
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 about NIFTY & Credit Spread, lets get into the details how the combination of these two works in Real Market Conditions.
Biggest advantage of trading INDEX (or 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.
