Skip to main content

Different Outlook To Intraday Trading With Nifty Options

Every trader need to have knowledge about trading before they start trading, and here is few points for the traders that will definitely change the outlook to intraday trading.
1.Liquidity: The volumes of the At the Money Strike call or Put are individually equal to the NIFTY Futures Volumes. The combined volumes in the At the Money Call and Put are more than the NIFTY Futures.

2.Options are the only Instruments which move more than the NIFTY in terms of percentage moves.

3.Time DecayOptions are prone to Time decay which is commonly known as the Theta effect.

4.Effects of other Greeks: Implied Volatility tends to increase in range Breakouts and subsides when NIFTY gets in a rangebound move. Predicting the rise or decline in Implied Volatility is a challenging task for traders and needless to say successful predictions carry huge rewards.

5.Specialized skills:
Trading Options thus is a very specialized field where lay traders without any knowledge of the interactions of the key greeks can get caught on the wrong side inspite of the right view on the NIFTY. Example many traders come to me with the question I bought the call and NIFTY moved up some 100 points but the Call option which I bought hardly moved up by 30-40 points.

Here the Trader had a right view on the NIFTY but failed to factor in the effect of the Implied Volatility, Theta etc and ended up making less money inspite of a correct view. Alternatively the Trader would have made better returns by selling some Near the Money PUTS. The strategies keep changing with the views and the above is just a theoretical example.
Visit Us : www.technotrades.biz
Contact Us : 09958406102

Comments

Popular posts from this blog

Free Downloads of Best and most accurate MT4 strategies and Indicators| MT4 ROBOT EA

http://mediajx.com/story7112431/the-2-minute-rule-for-robot-forex-funciona http://bookmark-dofollow.com/story6027470/about-forex-auto-trading-robot-free-download http://bookmark-template.com/story6030122/5-tips-about-scalping-robot-mt4-you-can-use-today http://prbookmarkingwebsites.com/story4171399/forex-wiki-no-further-a-mystery http://socialmediainuk.com/story4607483/the-best-side-of-metatrader-4-free-download http://dirstop.com/story4894182/the-fact-about-expert-advisor-programming-for-metatrader-4-that-no-one-is-suggesting http://opensocialfactory.com/story3739470/facts-about-metatrader-4-indicators-revealed http://ztndz.com/story6395566/the-definitive-guide-to-forex-robot-gratis http://gorillasocialwork.com/story4899066/forex-ea-advisor-options http://socialrus.com/story4358261/the-single-best-strategy-to-use-for-forex-online http://socialmediastore.net/story4742935/the-single-best-strategy-to-use-for-forex-online http://socialnetworkadsinfo.com/story4765280/not-known-f

Day Trading Software - Does This Really Work

By  Peter Skotnicky Can day trading software be an invaluable tool when it comes to choosing profitable stocks? Exploring this somewhat new technology may help with selecting the smart trade. Day trading software can give you an extra advantage to choosing the right trades. By using algorithms, the software helps choose the stocks that will be the most profitable. If this is a new concept for you as with most people when it comes to day trading, here are a few basics. The trade day starts at 8 a.m. and is over at 4 p.m. Eastern Time. Since most people would like to know what is happening on the stock market before they begin trading, this is where the software comes into the picture. Choose a style that delivers the most important aspects to you before the trade day begins. News feeds and analysis of the best choices is extremely important. The stock market is complicated and figuring out what all the charts mean is nearly impossible for a newcomer. If you want to know a li

Accurate Tips, Rules and Techniques For Intraday Trading

Accurate Tips, Rules and Techniques For Intraday Trading We all go into the stock market to make profits and most traders go into day trading to make a substantial amount of profit daily without any long term commitments. However to make a worthwhile profit and maintain a certain standard in day trading you need to follow certain rules and techniques to maintain your profit level or even surpass it. So what are those tips, rules and techniques you need to become a successful day or intra day trader? 1) Don't trade the first 15 minutes the market opens: it's best to wait for these first few minutes and observe the market and spot potential rewarding opportunities. The first few minutes of the action are often panic trades or market orders placed the night before. It is advised even by professionals in the business to avoid this time period while also looking at the order of business for the day. 2) Newbies should avoid using margin: Margin is you borrowing mone