Day-61 | 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

  1. It was gap up opening
  2. Decided not to go with the Trend & traded reversal
  3. Bought 22350 CE & Sold 22250 CE
  4. This Trade given us profit of 420
  5. In same duration 22500 PE given us loss of 872

NIFTY Pre- Market view for 28 March ( available on Front Page)

NIFTY premarket view

Our Intraday TradingStrategy

credit spread

27 Mar Intraday Trading Chart

Nifty intraday chart

Outcome of the Today’S Trade :-

credit spread

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.

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