Day-60 | 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
Highlights of Today’s Trade :-
1)It was Gap Up Opening,
2) Entry was not perfect it can be delayed,
3) Sold 22050 PE & bought 22150 PE
4)This Trade given us loss of 752
5)Naked option buying(22350 PE) given Loss of 1675
NIFTY Pre- Market view for 27 March ( available on Front Page)
Our Intraday TradingStrategy
27 Mar Intraday Trading Chart
Outcome of the Today’S Trade :-
Performance Sheet
What is Credit Spread in Intraday Trading ?
Selling higher Delta strike(ATM/ITM) & buying lower (OTM/Deep OTM) for hedging & margin 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 with the help of Credit spread, it gives you an easy access to Risk Management & Position Sizing.
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.