Estratégia de negociação nítida do banco

Estratégia de negociação nítida do banco
Banknifty é o segundo índice mais popular na India Stock Markets, primeiro obviamente é Nifty. O Banknifty é um índice setorial composto pela maioria das ações bancárias indianas líquidas e de grandes capitais.
12 Os estoques bancários fazem parte do índice Banknifty com diferentes níveis de pesagem. Os bancos incluídos neste índice são: Banco Axis, Banco de Baroda, Banco da Índia, Banco Canara, Banco Federal, Banco Hdfc, Banco Icici, Banco Indusind, Banco Kotak, Banco Nacional Punjab, Banco Estadual da Índia, Yes Bank.
O que fazemos no BANKNIFTY?
Estamos negociando em Banknifty desde há muitos anos e vimos e sobreviveram muitos movimentos voláteis dele com sucesso. Agora, desenvolvemos um plano de negociação denominado The Banknifty Plan, onde fornecemos um método passo a passo para negociar de forma rentável em opções de Banknifty.
PORQUE você precisa desse Plano de Negociação?
Verificou-se que os mercados são amplamente operados por fabricantes de mercado. Então, se você está negociando com métodos antigos de análises técnicas ou teorias de software, essas teses são muito conhecidas por esses fabricantes de mercado. Certamente eles criarão situações em que suas perdas serão atingidas. Parar a perda também é uma perda. O Plano Banknifty é algo que não depende de nenhuma especulação ou direção. Depende da lógica do mercado e, enquanto os mercados estão lá, funcionará. Então, siga a lógica do que a especulação e as chances de sucesso são cem por cento.
Como você pode obter este Plano de Negociação?
Visite a página The Banknifty Plan neste site para conhecer os detalhes de obter este plano. Você também pode contatar-nos no 09311654963.
Quem deve ir para este plano de negociação?
Se você é um comerciante existente e tem alguma experiência em opções de negociação, você deve ir para este plano de negociação. Se você é totalmente novo no comércio de derivativos ou na negociação Nifty / Banknifty, não o encorajamos a comprar este plano.

Estratégia da opção Nifty.
Esta é uma ferramenta para aproveitar a estratégia da opção.
Ilustração:
1) Na ferramenta, selecione & # 8216; Tipo de opção & # 8217 ;, & # 8216; Posição & # 8217; (curto ou longo), & # 8216; Preço de greve & # 8217; e & # 8216; Número de lotes & # 8217;
2) Pressione calcular para ver o preço atual (preço Live Nifty Option) desta estratégia.
3), e. se você tiver comprado 20 lotes de posições de preço de exercício de 7000, selecione & # 8216; coloque & # 8217 ;, & # 8216; long & # 8217 ;, & # 8216; 7000 & # 8217; e 20 na tabela acima.
4) Isso exibirá o & # 8216; diagrama de pagamento e # 8217; para esta opção & # 8217;
5) No próximo menu suspenso, você pode selecionar qual opção deseja ver no gráfico.
6) Pressione & # 8216; Calcule & # 8217; para ver o preço ao vivo da sua estratégia de opções.
7) Você também pode criar estratégias mais complexas e ver as recompensas ou calcular o preço.
8), e. Long 1 lote de 7500 Call e Short 1 lot of 7600 Call & # 8211; & gt; então calcule o preço da estratégia. Se você espera que o mercado permaneça entre 7500 e 7600, essa estratégia poderia obter bons retornos.
9) O diagrama de Payoff da estratégia acima será semelhante ao gráfico abaixo:
CHIDIPUDI VENKATA SUBBA REDDY diz.
Gostaria de seguir as sugestões fornecidas neste site.
KAIZER MD AMIN diz.
É um aplicativo realmente sofisticado. e isso reduz muito o trabalho agitado. Eu amei.
Siga a estratégia e obtenha um enorme lucro.
Precisa saber um guia adequado, por favor, diga como começar no início & # 8230; 9324020961.

Como transformar as opções semanais do Bank Nifty em uma máquina regular de condução de renda?
O contrato do Bank Nifty Weekly Options foi introduzido pela National Stock Exchange of India (NSE) a partir de 27 de maio de 2016.
Mais cedo, apenas o contrato de opções mensais estava disponível para negociação para todos os instrumentos, incluindo ações e índice, enquanto que agora você pode negociar no contrato de Contrato Níquel Semanal do Banco onde o dia de caducidade para este contrato semanal é quinta-feira de todas as semanas.
como essas opções semanais no índice bancário têm benefícios sobre os contratos de opção mensais?
Por que trocar as opções semanais bancárias e semanárias do que os futuros de bancos comerciais?
Como podemos negociar essas opções nítidas bancárias semanais para ganhar dinheiro?
Os benefícios das opções de negociação sobre os futuros, conforme descrito no artigo Parte VII e # 8211; Começando com o Trading & # 8211; Como trocar opções? é que todo investidor está familiarizado com o velho ditado de & # 8220; Comprar baixo e vender alto & # 8221; mas com opções você pode fazer lucros quando os mercados estão indo para cima, para baixo ou mesmo para os lados.
As opções oferecem uma vantagem para você como comerciante para ganhar dinheiro mesmo quando os mercados não estão tendendo e presos na faixa de consolidação.
As opções semanais nos darão a qualquer momento oito contratos semanais (Call / Put) no Bank Nifty Index para negociação junto com o contrato de expiração mensal do terceiro mês. Portanto, assim que expirar o primeiro mês, os contratos semanais para o terceiro mês também serão disponibilizados.
Por que os novos comerciantes sentem que a negociação de opções é como jogar?
A maioria dos novos comerciantes que entra no mercado ficou entusiasmado e fascinado ao saber que eles podem comprar um mercado ou um estoque com oportunidades para obter lucros ilimitados.
e isso também com um risco muito limitado ao comprar as chamadas fora do dinheiro.
Parece um bom lugar para começar e se sente ser uma varinha mágica que os levará a novas alturas simplesmente comprando as opções de OTM baratas e ganhando grandes ganhos.
Isso sentiu-se sincronizado com a psicologia do comerciante (especialmente os novos vencedores) de comprar um estoque baixo e vendê-lo alto, onde eles caíram na armadilha de comprar ações de baixa qualidade a preço barato.
O que acontece depois,
Toda a loucura entrou em um dreno para a maioria dos recém-chegados quando a maioria das suas idéias comerciais de comprar opções baratas & # 8230; & # 8230; passou a ser nada digno e tudo se torna um Apocalipse.
Isso ocorre devido ao fato de que o comerciante não precisa estar certo apenas com a direção do movimento de preços, mas também tem que estar certo com o tempo.
Se estamos errados sobre qualquer um dos itens acima, isso resultará na perda do prémio pago.
Geralmente, os mercados estão em fase de preparação por mais de 70% do tempo, o que leva a mais de 70% do contrato de opção expirar sem valor, ou seja, tornam-se ZERO.
Assim, o tempo funciona como um inimigo para o comprador da opção, pois cada dia o subjacente não se move, a opção premium começará a derreter e evaporar.
Portanto, se você é um comprador de opções, então há 30% das chances de que você será lucrativo enquanto o vendedor tiver chances de 70%, o comércio será a seu favor.
Pergunte-se o que você escolheu para trocar quando você entrou no mercado de negociação pela primeira vez & # 8211; Opções de compra como o risco é limitado ou Opções de venda que tem mais risco envolvido?
Você sabe que o maior erro cometido pela maioria dos comerciantes é que eles pensam que deveriam trocar todos os dias.
Eles pensam que o comércio é tudo sobre estar na frente de sua mesa de troca todos os dias, e comprar e vender esquerda e direita.
E, eles caem sob a armadilha.
Se você realmente quer evitar grandes perdas comerciais, você precisa ter alguns fatos e razões para negociar.
E acredite em mim, você precisará aprender muita paciência para entender o mercado, enquadrar e seguir suas regras de negociação.
Evite a armadilha, Leia Por que negociar todos os dias é um plano bobo (e o que fazer em vez disso) para entender como o dia de negociação é diferente do pensamento geral de negociação a cada dia.
E, como os profissionais trocam os mercados para evitar cometer os mesmos erros repetidas vezes.
Você pode ter lido e ouvido milhões de vezes que o risco com as opções de compra é limitado ao preço do prémio pago. Certo?
Mas você sabe que podemos até ficar preso e perder mais do que o valor do prémio, mesmo quando você está comprando opções e se eu lhe disser que você pode sofrer perda, mesmo depois de ter um comércio rentável.
Leia o Aviso: 5 Armadilhas a Evitar Ao Trocar Bancos Nítidas Opções Semanais no Dia de Vencimento para saber como o adágbio teórico de perda limitada ao comprar opções não é completamente verdadeiro em todos os casos e como evitar uma das maiores armadilhas do que nós chamar como um & # 8220; Contract Shock & # 8221 ;.
Vamos voltar às opções & # 8230 ;.
Por isso, não queremos dizer que os compradores das opções não ganhem dinheiro ou não devemos comprar as opções de qualquer forma?
Eles fazem & amp; Nós também devemos fazer isso # 8230;
Então, sempre que você for opções de compra, especialmente aquelas que atraem muito interesse dos novos concorrentes, ou seja, que estão fora do dinheiro, você precisa de uma justificativa sólida e válida e um fato para provar que os mercados irão aumentar e que também antes do termo do contrato & # 8230 ;.
Quando você sabe que o mercado vai subir ou cair por causa de algum padrão de conclusão em gráficos ou outros motivos, então faz sentido comprar opções e alcançar alguns bons resultados.
Podemos ter razão com a análise de que o mercado pode aumentar, diz 200-300 pontos com poucos dias e as chamadas OTM explodem 100-300% dentro de alguns dias.
Da mesma forma, existem maneiras em que podemos comprar uma opção de compra com uma perda de parada próxima para intraday quando esperamos que o banco habilmente complete um padrão e prepare-se para se reunir e ganhar dinheiro decente em nosso comércio.
Mas isso exige que você esteja muito certo com sua análise especialmente com a direção do mercado.
Nós aqui gostaríamos de deixar claro que não é que não compramos opções .. Nós fazemos & # 8230;
Mas essa estratégia tem pré-requisitos diferentes e deve ser implementada quando esperamos um movimento direcional claro no banco nifty após padrões claros ou baixos.
A compra será rentável somente quando pudermos analisar e prever a direção e um grande impulso de preços no subjacente, enquanto a venda pode ser rentável quando você está certo com o pensamento geral de que o mercado pode consolidar ou não ir acima ou abaixo de algumas marcas psicológicas importantes.
Portanto, os recém-chegados não devem cair na armadilha das opções de negociação comprando chamadas baratas ou colocando apenas porque estão negociando a preços baixos.
Como comprar sempre funciona como jogar no casino onde os vendedores das opções são donos dos casinos com maior probabilidade de obter o comércio a seu favor.
Não há comparação quando você compra um estoque de alta qualidade a um preço razoável e quando está comprando ações de baixa qualidade apenas porque está negociando a um preço barato.
Você, como comerciante, sempre terá uma vantagem e terá maiores chances de sucesso no comércio ao detectar e inserir um estoque de alta qualidade.
Como mesmo o risco será muito menor e as recompensas serão muito agradáveis.
Warren Buffet para Investir nos Stocks disse:
"O grande erro que fizemos nos primeiros anos foi tentar comprar um negócio ruim a um preço realmente barato # 8230;
Levou cerca de 20 a 30 anos para descobrir que não era uma boa idéia ".
Pensamentos semelhantes podem ser aplicados enquanto estamos negociando ações, futuros ou as opções. Então, não é o preço ao qual a opção está sendo negociada e é mais sobre a avaliação da probabilidade que esperamos pelo sucesso do comércio.
A grande consideração aqui é primeiro conhecer e entender a oportunidade e a probabilidade do sucesso do comércio, especialmente quando as opções de negociação, em vez do custo de comprá-lo.
Mas por que diabos devo trocar por retornos pequenos e enfrentar grandes riscos?
Como apenas porque 18000 Bank Nifty Weekly Call Option estão negociando a um preço barato de Rs. 10 não faz uma compra lucrativa se o mercado não tem como ir acima desse mercado dentro de alguns dias ou até o termo.
Há uma razão pela qual ele está negociando em Rs. 10 porque há menos chances de que o mercado atinja essa marca até o termo.
Então, seria melhor escrever a opção de chamada 18000 para receber o pequeno valor premium, pois há maior probabilidade de que o mercado não atinja essa marca até o término.
Então, se os lucros são pequenos ou grandes, deve ter certeza de que ajudará um comerciante a assumir grandes posições e a obter grandes ganhos seguros.
Para fazer um sucesso na negociação de opções, restrinja-se com a primeira pesquisa do movimento de preços do subjacente (BankNifty) para prever onde ele vai se dirigir dentro de seu tempo estipulado, então vá em busca e digite o contrato de opção certa com motivo justificado de por que você é comprando ou vendendo.
Além disso, quando você está negociando opções nítidas bancárias semanais, o valor do tempo se evaporará muito rápido após o fechamento de terça-feira.
Então, ao comprar opções, você precisa ser rápido, nítido e certo com sua análise sobre o movimento de preços que está esperando e saber em que intervalo de tempo e # 8230 ;.
Isto discutimos no final da publicação descrevendo os benefícios de escrever uma opção do que comprar opções.
Economize seu tempo e frustração. Tempo para ler sobre como começar com as opções de negociação & amp; banco nifty.
Como ganhar dinheiro com a negociação no mercado de ações indiano? & # 8211; Fizemos o melhor possível para mantê-lo detalhado e nítido, tudo que você sempre quis saber sobre Trading & amp; Investir no mercado de ações da Índia. Aqui estão oito passos a seguir para começar a ganhar dinheiro com a negociação.
Parte VII e # 8211; Começando com o Trading & # 8211; Como trocar opções? & # 8211; Quer ser um comerciante de opções em tempo integral, mas tem medo de todos os jargões e achar difícil entender a dinâmica das opções de negociação. Então você precisa ler isso.
Parte I & # 8211; Começando com Opções de Negociação & # 8211; Como funciona um comércio de opções? & # 8211; Entrar em Real Trading é complicado. Como um novo comerciante, é importante tornar sua tarefa comercial mais simples. Se aprofundar em entender como funcionam as opções comerciais no mercado real.
Por que mais margem é necessária para opções de curto / gravação do que opções de compra? & # 8211; Perguntando por que você é convidado a colocar mais dinheiro quando você está escrevendo opções do que quando compra? Tem algo para lidar com o risco do comércio. Mas isso não reduz a probabilidade de tornar o dinheiro inteligente curto das opções do que comprar. Time to Think & # 8230; & # 8230;
O que é o índice BankNifty (CNX Bank Nifty Index) & amp; Como negociar BankNifty? & # 8211; É sempre importante entender o que deriva o movimento do subjacente especialmente quando você está lidando com opções e amp; isso também quando é um instrumento altamente volátil Bank Nifty & # 8211; então não há escape para ele. Pergunte a si mesmo como pode fazer grandes mercados de futuros ou mercados de opções em que você não conhece nada?
Como negociar Futuros Nivis Bancos? & # 8211; Já se perguntou quantos comerciantes fizeram sua carreira comercial apenas negociando com sucesso os futuros do banco? Aqui é exatamente como saber um mercado profundo e pré-planejamento lhe dará a espada para gerenciar seu risco sabiamente, seja seguro e continue rentável no mercado para sempre. Esses elementos ajudarão a transformá-lo de um Comerciante Aspirante em um Tradutor Legendário.
O preço do preço de opção de opções bancárias tem uma lacuna de 100 pontos dentro de cada contrato. Atualmente, o índice Bank Nifty é 17700, portanto, os preços de chamadas e colocações de preço para os contratos semanais de 16000 a 19500 estão disponíveis para negociação com contratos sucessivos de 16100, 16200, 16300 e assim por diante.
Mas a liquidez só está disponível nos contratos que estão perto do preço subjacente com 5% mais e menos, ou seja, de 17700 a 18500 para opções de chamadas e de 17700 a 17000 para opções de venda e também para o contrato da semana atual, em 23 de junho de 2016.
Tabela 2 e # 8211; Bank Nifty Weekly Options Chain.
Confira os preços em tempo real de todos os contratos disponíveis para negociação BankNifty Options NseIndia & # 8211; Cadeia de opções nítida do banco.
Por que as opções fora do dinheiro são os contratos mais ativos?
Se você verificar o gráfico eu, podemos esboçar que a chamada que está acima do preço de mercado atual (ou seja, fora das chamadas de dinheiro) está ativa com a maioria dos volumes negociados, ou seja, as opções de compra do preço de exercício 17800, 17900 e assim por diante são negociadas grande enquanto a chamada 18000 tem o maior volume comercializado para o dia com maior interesse aberto.
enquanto as opções de venda que estão abaixo do preço de mercado atual (ou seja, fora do dinheiro colocado) são ativas com a maioria dos volumes negociados, ou seja, as opções de venda do preço de exercício 17600, 17500 e assim por diante são negociadas grandes enquanto a opção de venda de 17000 é a maior parte negociada com maior interesse aberto.
Por que a opção de chamada ou colocação que não possui valor intrínseco, em vez disso, o preço do prémio é que o valor do tempo é negociado ativamente?
Isso ocorre porque muita escrita está acontecendo para a opção de chamada 18000 e a opção de venda 17000, ou seja, o mercado está esperando que o banco não se mova em qualquer lugar acima da marca de 18000 e abaixo de 17000 antes dessa sessão de caducidade.
& amp; se isso acontecer, os vendedores da opção de chamada 18000 e amp; A opção 17000 colocada manterá o prêmio completo de Rs. 42 e amp; Rs. 17 no bolso no prazo de validade, uma vez que ambas as opções se tornarão zero se o mercado expirar em qualquer lugar dentro da zona de 17000-18000.
Além disso, um comerciante deve manter um olho falcão em qualquer aumento no interesse aberto do contrato de opções que nos permite saber quais os níveis que os mercados consideram importantes como resistência e suporte.
Para verificar as opções mais robustas do banco. Visite as 20 melhores opções mais habilitadas do banco no NseIndia e escolha Nifty Bank Options. Isso o ajudará a conhecer os níveis mais importantes como suporte ou resistência no mercado.
Facilidade de negociação para compradores e Escritores com opções semanais do Bankly Weekly.
As opções semanais certamente ampliaram o escopo das oportunidades de negociação disponíveis para um comerciante do Bank Nifty.
Como agora, o comerciante pode assumir posições no contrato de opção semanal pagando menos prémio do que ele teve que pagar ao entrar nos contratos mensais.
Anteriormente, o escritor ou o comprador das opções enfrenta muitos problemas e precisa manter o alinhamento das suas posições comerciais, uma vez que houve grande diferença de tempo entre o prazo de validade dos contratos. Mas a introdução do banco nifty opções semanais mãos oportunidade para ganhar dinheiro para prever o mercado se move a acontecer nos próximos dias do que esperar o final do mês.
Da mesma forma, o vendedor das opções terá que prever o mercado por alguns dias para aproveitar a oportunidade escrevendo as opções semanais do banco nítidas.
Em geral, existem duas estratégias que um comerciante pode escolher: - Opções de compra e amp; Opções de venda.
A opção de compra pode envolver a compra de chamadas (quando se espera uma vantagem no Índice Nítido Bancário) ou a compra coloca (quando se espera uma queda no Índice Nítido Bancário). Enquanto, por outro lado, as opções de venda envolvem a venda de chamadas ou as opções de venda do Contrato Nítido do Banco.
É muito importante entender o que constitui o preço premium do contrato de opções.
Premium = valor intrínseco + valor de tempo.
O valor intrínseco é o que as opções são reais ou próprias. Em outras palavras, qual será o valor da opção se o contrato for expirado agora mesmo.
Digamos que o BankNifty está às 18000 e a chamada 17800 está sendo negociada em Rs. 250 então o valor intrínseco é Rs. 200, que é o valor da opção se expirar imediatamente. Então, o valor do tempo se tornará zero.
O preço das opções é feito nos fatores como Valor do subjacente, tempo de expiração, etc.
Então, o preço não leva em consideração a posição do mercado, suporte ou níveis de resistasnce que o mercado enfrenta, etc. Assim, o comerciante técnico está em vantagem porque eles têm essas outras espadas fundamentais para entender onde os mercados irão se dirigir para dentro de alguns dias.
Opções de compra.
Ao comprar uma opção, você pagará o preço premium, que inclui alguns extras como valor do tempo para decidir se deseja cumprir o contrato ou deixar seu direito expirar.
Um comerciante que compra uma opção call / put espera um movimento para cima / para baixo no Índice BankNifty mais do que o prémio que pagou e também dentro de um curto período de tempo antes ou pelo menos até o final do contato, pois o valor do tempo continua reduzindo com o tempo .
Por exemplo, quando o índice BankNifty está negociando em 17700, a opção de compra semanal do preço de exercício 17800 está negociando um preço premium de Rs. 100. A opção de chamada 17800 não tem valor intrínseco enquanto você paga Rs. 100 extra para obter o direito de comprar o BankNifty 17800.
Então, os Rs. 100 extra é o valor de tempo que você está pagando para obter o tempo para decidir se deseja cumprir o seu direito de comprar o banco nifty 17800 ou deixar o seu direito expirar e sofrer uma perda máxima do prémio pago.
Portanto, você espera que o banco se mantenha acima de 17900, ou seja, 17800 + 100 até o vencimento para lucrar com o comércio.
Suponha que, no prazo de validade, o índice do banco nítido suba para 18000, esta opção de opção de chamada 17800 valerá Rs. 200, pois o valor do tempo agora se tornará zero e você ganhará o lucro de Rs. 100 (200-100).
Mas e se o índice aumentar para apenas 17800, a opção de chamada valerá Rs. zero e você sofrerá uma perda de prémio total que você pagou quando o banco era nítido negociando 17700.
Assim, mesmo depois que o índice do banco nifty subiu de 17700 para 17800, mas você não fez nenhum lucro porque você pagou o valor extra de Rs. 100 para o vendedor do contrato para estender o tempo para decidir se deseja cumprir o contato ou deixar seu direito expirar.
Opções de venda.
Quando você estiver vendendo uma opção você receberá o preço premium por dar ao comprador o direito de comprar a opção que inclui o valor do tempo que normalmente funciona a favor dos vendedores do contrato da opção.
Um comerciante que vende opções de compra / venda não significa que o movimento de queda / subida significativo seja muito superior ao nível do preço de exercício. Assim, os vendedores esperam que o mercado não vá acima do preço de exercício da opção de compra que ele vendeu e não vá abaixo do preço de exercício da opção de venda que ele vendeu.
Em geral, o vendedor do contrato de opção entra no mercado durante a terceira ou última semana da expiração mensal, mas agora é apenas a questão das cinco sessões de negociação e das negociações de maior probabilidade podem ser inseridas ao escrever as opções nos últimos 2-3 dias do prazo. contrato, enquanto o valor da maior parte do tempo evapora rapidamente durante esse período.
No exemplo acima, no dia de expiração, se o índice bancário aumentar para 18000, o vendedor terá que sofrer uma perda de Rs. 100.
Enquanto se o índice sobe para apenas 17800, a opção de chamada valerá Rs. zero e o vendedor terá o lucro do prêmio completo. Assim, mesmo depois que o índice bancário aumentou de 17700 a 17800, o vendedor está no lucro.
Assim, o comércio de opções envolve não apenas prever o movimento do preço esperado do subjacente, mas também acessar o período em que esse movimento de preços acontecerá, pois você estará pagando o valor do tempo ao comprar um contrato de opções.
Portanto, se você pode prever que o mercado se moverá grande em uma direção, então você pode comprar ou colocar e obter lucros, enquanto você espera que o mercado não vá acima ou abaixo de algum nível, então você pode vender esse contrato de opção e retome todos os prêmios, pois o valor do tempo funcionará a seu favor se o mercado não se movesse muito no prazo estipulado.
Agora, somos claros com as opções positivas e negativas de negociação. Voltemos ao contexto do Contrato de Opções Semanais Nítidas do Banco com o qual você pode detectar e conquistar mais oportunidades.
Como agora com as opções semanais, teremos que acessar e prever o que o mercado estará fazendo nos próximos dias para se beneficiar da oportunidade # 8230;
Benefícios do Trading Bank Nifty Weekly Options.
Existem vários benefícios para isso: -
Agora, os comerciantes que gostariam de assumir posições no Bank Nifty podem fazê-lo comprando chamadas ou colocando a um preço menor que o que estava disponível com as opções mensais.
& # 8211; Isso ajudará a reduzir uma grande ambigüidade com a redução do intervalo de tempo para expirar. Tal como acontece com as opções mensais, era necessário fazer um alinhamento das posições no mês. Como é mais conveniente e possível prever os movimentos para 5 dias de negociação do que mais de 20 dias de negociação.
& # 8211; Como a maioria dos grandes comerciantes usa opções para escrever e empobrecer o valor da decadência do tempo. Então, esses semanários os ajudarão a ter um melhor controle sobre seus negócios, já que eles têm que prever o mercado por 5 dias de negociação e não mais do que acontecerão nos próximos 20 dias.
# 3. A oportunidade de negociar de acordo com o mercado se move 4 vezes por mês.
Agora, as oportunidades de decadência do tempo estarão disponíveis 4 vezes em um mês, em comparação com uma vez por mês. Os comerciantes ficam ativos durante os últimos dias da expiração para escrever chamadas OTM e colocar opções. Então, agora eles podem fazer isso negociando todas as semanas.
# 4. Troque importantes eventos com menos riscos.
Weeklies ajudará os comerciantes a assumir posições para grandes eventos, como a política de RBI, Brexit, Election Results e também com muito menos risco.
& # 8211; Negociar nesses dias exige que você tome posições em ambas as direções do mercado, pois esperamos um impulso, mas não tem certeza da direção. Então, chamadas e colocações que estarão disponíveis a um custo muito barato podem ser compradas para aproveitar a volatilidade.
& # 8211; Hedging para esses eventos & # 8211; Weeklies podem ser especificamente utilizados para proteger seu portfólio para qualquer correção imparcial por curto prazo. Como o que aconteceu no dia do brexit. Bank Nifty caiu de 18000 para 17000 e retornou para seguir sua atual tendência ascendente. Assim, a cobertura de portfólio pode ser feita comprando itens semanais a baixo custo.
& # 8211; Antes da introdução de opções semanais, se quisermos proteger uma posição por risco de evento, como uma Brexit ou RBI Policy ou Dados de inflação, fomos obrigados a usar as opções mensais e pagar um prêmio pelos dias restantes para o vencimento por isso opção. Agora, é muito mais fácil e mais barato lidar com cobertura para risco de eventos usando opções semanais.
# 5. Oportunidade para pequenos comerciantes.
Assim como a negociação de um evento, os pequenos comerciantes podem negociar esses semanais para proteger suas carteiras, escreva opções de Out Of The Money (OTM) para tirar proveito do tempo de deterioração, o que era difícil de fazer com as opções mensais de alto custo.
As opções de opção semanais são coberturas excelentes e baratas para cobrir outras posições de participações de longo prazo, enquanto as opções de chamadas semanais são ótimas para trabalhar como Chamada Coberta para escrever apostas de alta probabilidade.
# 6. Distribuição reduzida entre lance e amp; Peça preços.
Isso ajudará a aumentar a participação de todos os comerciantes de variedades, de modo que haverá menos diferença entre os preços de oferta e de venda. Portanto, uma entrada ou saída rápida pode ser feita sem se preocupar.
# 7. Comissões aumentadas e amp; Renda para troca, corretores.
E sim, o aumento da participação na participação levará a mais rendimentos para trocas e corretores.
# 8. Mantenha sincronizado com mercados desenvolvidos.
Em outras nações desenvolvidas, as opções semanais estão disponíveis para negociação no índice, bem como ações para ajudar os comerciantes a se protegerem e assumir posições curtas de acordo com as condições do mercado. Além disso, além dos semanários, há opções de longo prazo no índice e as ações também estão disponíveis para negociação para assumir posições de grande horário, pagando o custo da perda.
Felizmente, vamos ver mais semanários em estoques e outros índices. Comece com nossos sapatos e prepare-se para conceber idéias, estratégias para ganhar dinheiro com esses semanários.
Como negociar as opções semanais do banco nítidas?
O preço das opções é impulsionado principalmente pela movimentação de preços do subjacente que, neste caso, é o índice bancário nítido. Então, para julgar onde as opções se dirigem para ele, é importante dar uma devida consideração para onde o Índice Nipty do Banco se moverá.
Portanto, a primeira coisa e acima de tudo que nós, comerciante de opções bancárias, é fazer e analisar e prever o que pode acontecer no índice bancário para os próximos dias.
Há outra maneira de ver isso. Esperando o que o Índice Nítido do Banco não fará nos próximos dias?
Muitos comerciantes não se sentem confiantes nos futuros do banco negociador, mesmo depois de fazerem um ótimo trabalho de pesquisa, mas são bons em avaliar depois de determinada ação de preço do mercado quais os níveis que os mercados não esperam se mover acima ou abaixo.
O mercado de opções ajuda-os a lidar com esse problema e servem como uma ótima ferramenta para obter lucros consistentes usando estratégias multidimensionais em um movimento de mercado lateral.
Se você estiver escrevendo opções semanais bancárias antes do prazo de validade, você precisa avaliar o que o mercado deverá fazer no próximo dia, quais níveis são importantes como suporte e resistência, que o mercado não pode quebrar mesmo no caso de haver algum nível alto movimento de preço de impulso.
Isso pode não exigir muito para prever o quantum e o tempo do movimento, em vez de estimar o que o mercado não pode fazer até a quinta-feira.
Como esboçamos, o prémio de opção tem o valor intrínseco e de tempo ao todo tempo. Então, o preço não leva em consideração o quanto o mercado já reagiu? onde são os principais apoios e resistências que o mercado pode se referir no próximo momento?
Um chartist tem uma vantagem para obter o benefício dessa oportunidade subjacente.
Diga se um comerciante pode entender a posição do mercado e conclui que o mercado se reuniu em grande e agora está sentado em uma grande resistência de 18000, que exige que a consolidação aconteça em uma grande banda para decidir se ir mais longe ou começar a corrigir, então eles podem venda a opção de compra do preço de exercício acima da marca de 18000, uma vez que expirará sem valor se o mercado não puder ir acima dela.
Esta ilustração parece ser tão fácil de trocar. Mas muitos de vocês podem estar abusando de quem diabos vai nos dizer que o mercado enfrentará a resistência 18000?
Então, depende totalmente do que você é bom ao chamar o mercado?
Você consegue concluir que os mercados vão gastar tempo antes de subir ou descer ou os mercados vão estar explodindo ou encalhando mais baixo?
Cada tipo de evidência final irá ajudá-lo a decidir qual estratégia escolher para tirar o máximo proveito.
Mas, como agora, os volumes de negociação de opções estão aumentando várias vezes desde os últimos anos e a maioria desses contratos de opções (pelo menos 70%) expiram sem valor.
Então, quem diabos está ganhando dinheiro se estamos comprando opções o tempo todo para assumir menos riscos e acaba com opções inúteis?
Escrever uma opção coloca você em uma ótima vantagem à medida que o valor da decadência do tempo funciona em seu favor. ou seja, o prémio começa a derreter com a degradação do tempo.
Na verdade, existem muitas maneiras diferentes de trocar essas Opções Semanais Nítidas do Banco, mas neste artigo discutiremos mais sobre como cancelar as opções semanais próximas ou no prazo de validade para ter um fluxo de renda regular e consistente e fazer com que este tempo se desintegra como sua espada na guerra.
Escrita / Shorting Bank Nifty Weekly Options.
Opções de redação requer margem total para negociar como no caso da negociação de futuros. Os comerciantes geralmente pesquisam o movimento do preço do índice nítido do banco e apresentam os principais níveis que eles esperam que o mercado não quebre até o termo do contrato.
Como o preço não considera a posição do mercado, sim depende do preço do subjacente, da volatilidade e do tempo de expiração.
Os leitores de gráficos estão sempre em vantagem, pois podem ver outros aspectos importantes que não são considerados ao avaliar o preço do prêmio.
Os comerciantes, ao analisar os gráficos, podem compensar esse mercado em poucos dias, não podem quebrar as principais áreas de resistência ou suporte. Então, eles podem saber que o mercado encontra vendedores que vêm do topo novamente ou compradores do fundo. Os comerciantes podem avaliar e entender a maior tendência do mercado e podem assumir posições em conformidade. Diga se a tendência está acima, então há probabilidades mais altas de que o mercado após a correção começará a se mudar novamente com a tendência atual e a compra de chamadas pode ser feita ou a venda de itens que estão abaixo dos níveis de suporte. O mercado gasta tempo para a consolidação após grandes movimentos rápidos para cima ou para baixo que servem como vantagem de escrever opções para lucrar com a decadência do valor do tempo. Talvez não precisemos estar certos com a direção do movimento do preço. Alguns comerciantes são bons em analisar o quadro geral e podem avaliar que o mercado não pode quebrar algum nível de suporte, nível de resistência ou diminuirá antes de subir, etc.
À medida que o valor do tempo se evapora muito rapidamente nos últimos dois dias para o contrato semanal, então uma grande linha de posições de negociação é iniciada no mercado de opções semanalmente no final da terça-feira ou durante as horas de negociação na quarta-feira com expectativas de onde o mercado pode aumentar ou cair até o vencimento, ou seja, quinta-feira.
Assim, a nossa tarefa começa analisando o panorama geral e o desempenho dos preços do Índice Banco Nifty até terça-feira para prever o que pode acontecer na quarta-feira e quinta-feira (o prazo de validade).
Se pudermos compensar esse mercado não aumentará ou cairá abaixo de alguns níveis principais, então podemos começar a escrever as opções para tirar proveito da decadência do valor do tempo.
Gráfico 1 e # 8211; Gráfico de caducidade semanal do banco nítido (5 minutos)
No gráfico 1 acima (para o mês de maio e junho de 2016), todas as linhas azuis representam os dias de vencimento semanais enquanto a linha rosa pontilhada representa o local onde o mercado fechou na terça-feira de cada semana, ou seja, 2 dias antes do término.
Por exemplo, a última linha azul representa a expiração semanal de 16 de junho de 2016, enquanto a linha rosa antes representa a posição de fechamento do mercado na terça-feira, o que é 14 de junho de 2016.
Escolher um contrato de opção certa é muito importante especialmente ao escrever as opções.
Sempre vá com os gráficos e tente escrever a opção de chamada ou de venda que está longe do preço atual do mercado, mas tem um preço de exercício próximo de alguns importantes de cima ou de baixo. Isso gerará um lucro muito pequeno, mas colocará a probabilidade de trabalhar em seu favor.
Então, a tarefa aqui é analisar a grande imagem do mercado até terça-feira ou no início da quarta-feira para prever onde o mercado pode subir ou diminuir até que expire na quinta-feira. Portanto, precisamos ancorar os principais níveis de suporte e resistência do índice bancário que servirá de âncora para o comércio nos próximos dois dias até o termo.
Digamos em 14 de junho de 2016 (quarta-feira) que podemos ver que o mercado tem uma forte resistência em ou acima de 18000, que novamente servem como um lugar de vendedores.
Então, podemos planejar uma redução da chamada de 18000 na quarta-feira, mas como o mercado continuou positivo desde a abertura e também fechou otimista para chegar a 17900 níveis.
Isso nos obriga a negociar com o pensamento conservador e nos dará outro ponto âncora para considerar como suporte que agora é 17500.
Gráfico 2 e # 8211; Gráfico semanal do banco nítido de junho (5 minutos)
Agora, podemos analisar a posição do mercado no início do prazo de validade para concluir o máximo, que pode avançar e diminuir no dia.
No dia do vencimento, o mercado teve uma grande queda dentro das primeiras horas do dia de negociação. Mas como analisamos que o mercado estava chegando a um importante nível de suporte de 17500, onde teve uma grande consolidação e subiu mais cedo.
So, here we can write the 17500 put options as this level will act as a major support for the market to consolidate or reverse for the upside.
Also, This fall make the conclusion very clear here that the that now the market will not break the today`s high of 17800 or the ultimate top level of 17900. But we cannot write the call options after this crash.
So we have to wait for the market to rise up so that we can start writing the call options of 17800 or 17900 and digests in all the premiums with the time decay.
If market did not reached the levels till the closing time then these call options will expire worthless or in other words will become Zero.
If you see the chart 2, the market started to consolidate in a band after the rise which benefits the option writer.
To check this further in another situation, Lets take the market position as on 29th June, 2016 i. e. Wednesday as now only one day is left for the expiry of the June Contract.
Chart 3 – Bank Nifty Weekly Chart June 2016 (15 Minutes)
There is no clear pattern forming up to conclude which levels can be act as anchored place to take stop losses as market in current phase is in strong intermediate up trend with no corrections.
From the chart above, we can see that the bank nifty has closed near 17700 mark on Wednesday and there are major resistance marks of 17900 & 18000 and support of 17400.
At 17900 mark, market has formed a double top which may again create a lot of problem for the market. Also, there is a major gap down from that level so even if market will reach that level it will just close the gap. This becomes our anchored top to write the call option of 17900 mark tomorrow i. e. on the day of expiry.
Table 3 – Bank Nifty Weekly June Contract Options Chain.
From the table above, the 17900 call option is trading at Rs. 14 which was trading for more than Rs. 20 today. So, tomorrow watching the market opening and few early trading time, we can analyse if market had less chances to go above it then one can write this call option to make small profit but which has higher chances and probability of success.
Also, if you see it is the only call option which has the highest positive change of open interest of 1,20,840 contracts which signifies that this is the option which has most of the interest of the market participant today and surely they are not buying it rather writing off to make Small But Higher Probability Profit.
17900 seems to be a better call option to write which we expect can become worthless with higher probabilities of success..
But as the markets current trend is up and momentum and volatility is huge so we may skip writing the call this expiry as the market can still continue the up trend and even opens gap up tomorrow.
As the volatility is huge so writing of options or carry any over night position specially when writing options in not suggestive as market map open with gaps the following days. So, under such cases, always wait till the day of expiry and trade as per the market move which happens in the early hours.
If we talk about the support of 17400 we cannot call it to be a major but still we can anchor it as a support for the market which can help us to write the put options below that level by checking the movement of the bank nifty tomorrow by the afternoon.
Also, the open interest is increasing in 17500,17600 put options by 1,54,050 and 1,26,600 contracts with highest open interest of more than 5.5 lac contracts in 17500 put option which depicts interest of market at these levels. This shows market is seeing them to also work as a major support so tomorrow market is also expecting that it may gap up and stay above 17500 or 17600 levels so they may also seem good to trade. if this happens, and market gap up and get moving up then the interest in 17700 put option will also increase.
Therefore, as there is big increase in open interest of 17500 & 17600 puts which shows market is seeing them to work as a major support tomorrow so there are chances that market may continue its current up trend further to go near 17900 pr 18000.
So, writing of calls seems a bit less attractive where if we go with the current trend of the market and high increasing open interest in puts of 17500 and 17600, the writing of puts or buying call seems to be a better choice on the expiry day tomorrow.
# 1. Whenever markets are not forming any clear bullish or bearish pattern and we are unable to find places to enter the market and place our stop losses so cannot buy options, then writing of options of strike price above or below the major anchored top or bottom is the only way for the trader to take the benefit of time decay on or before every weekly expiry.
# 2. Wait for the market move till Tuesday Close.
# 3. Anchor Major Resistance & Support Levels.
# 4. Analyse how far the market may go (in any direction) today even when there is high price momentum. If volatility is high and a trend is underway, wait to see the market movement in early hours on the day of expiry to take any positions.
# 5. Check which options has higher open interest and changes in the open interest to understand which market is seeing as major support or resistance near your anchored top or bottom. If even after reaching resistance market starts to show increase in open interest in puts expect market to keep going with current up trend. So skipping writing calls is what makes sense with buying calls or writing puts will put us under great chances of success.
# 6. Write the option above or below the major levels as and when market moves towards it but when it is still far off from major levels.
# 7. As options pricing do not consider these technical aspects of markets, so the right analysis becomes a sword for the trader to make great trades with higher chances of success.
The major drawback of this strategy is that it did not give us place to put up stop losses as even after shorting the option, the premium can rise with the movement against but still not move above or below the strike price and later become Zero.
Thatswhy it makes sense to trade near the expiry days (i. e. on later Wednesday or Thursday) which can give you be clear with the moves and in-turn have higher chances of successful trades.
Trading Bank Nifty Weekly Options in the Last Hours on the Expiry Day.
There are another set of traders who just get active on the last 2 hours of the expiry day. Seeing the trading for the complete day they come to conclusion for the new levels which market will now anchor as resistances or supports. So during the last 120 minutes, levels which are 100-200 points away from the current market needs to be anchored on.
So, the idea again is here to conclude What the Bank Nifty Index will not do in the next 90-120 minutes?
i. e., knowing Which levels market will not break now.
Also, some times during the expiry day which will happen once or twice every month, market will be near the major resistance or support levels. Traders have a tendency to book the profits during the last hours of the trading day when the market has moved in one direction during the day. Also this reluctancy to carry position is strong when the markets have reached some major sellers or buyers level.
So, those levels becomes our anchor levels to write the call or put options above or below it to take the benefit of time decay. The premiums must be trading at very low levels of Rs. 10-25 but the success rate will be huge as time decay is very fast during the last few hours of expiry…
# 1. Wait for the market movement till 1-2 PM on the expiry day i. e., every Thursday.
# 2. Anchor Resistance & Support Levels 100-200 points away from the current market price.
# 3. Also, check if the market is near some major resistance top or support bottom. Market may not go above or below it just because traders are reluctant to enter new buy or sell positions at the end of the day to avoid carrying any overnight positions whenever the markets are near these major levels which may give surprises by tomorrow morning gap up or gap down.
# 4. Also, if the market has been swiftly moving in a single direction though out the day and reaching the major sellers or buyers area then traders who bought during the day starts to book profits before the close. So, this may push the market lower or higher and not breaking these major resistance or supports.
# 6. Write the option above or below these important levels as and when market moves towards it but when it is still far off from major levels.
# 7. Again, as options pricing do not consider these technical aspects of markets, so the right analysis becomes a sword for the trader to make great trades with higher chances of success.
An important point to remember here is that the options will expire as per the settlement price of the underlying which in our case is Bank Nifty Spot Index. Settlement price is calculated as the weighted average of the last 30 minutes i. e. from 3-3:30 PM. Do not confuse it with the last traded price. So if on any day the bank nifty index rises in the last half hour then surely settlement price will comes out somewhere in between the last half hour range.
The objective to detail out about options and writing strategy is to show you how big traders create a lot of positions by writing options according to the market conditions. This can also be justified with increasing open interest in calls and puts which shows big writing off these options. This is not the only way to trade options but there are other strategies that we may follow which with time will keep on sharing.
But Remember, Whenever markets are trending strong in one direction and volatility is there then you should surely avoid writing the options as this may increase the risk and go all against you.. Whenever the volatility is huge it is always better to buy options (Calls or Puts) then writing or selling options first.
So, be sure of why you are buying or writing the options. Don`t be in a hurry to trade similar on every expiry day and even as we say that Trading Everyday is a Silly Plan similarly Trading on Every Expiry is a Silly Plan too and more silly with similar plan every time.
Therefore, it is always important first to understand how volatile the market is and how higher the chances are that it will stuck in range and will not break the important supports or resistance levels. Because if the trend is strong and markets are drifting in one direction from last few days and you still follows the similar strategy of writing options to get few profit points you might get into trouble.
You should know that the when the markets are not trending, stuck in band during the expiry days and no trending pattern is getting completed to let the market run in fast momentum in very short time frame then you can make out the important support or resistance levels which market may not break with higher probability and write options.
But when the trend is strong or patterns for bullish or bearish moves are there then writing will surely not be fruitful or sometimes may out the trader into trouble when the market reverses and corrects fast.
Therefore, always first analyse and give complete importance to the understanding the what the bank nifty is expected to do in the next few hours to day to decide what is best strategy to adopt to trade bank nifty weekly otpions on or near expiry.
Just like buying options is always not the right strategy similarly writing options is always not the right strategy too.
Weekly bank nifty options contract has widened the scope of trading options as now options sellers can repeat the process to sell options 4 times in a month which will reduce the ambiguity of being restricted to trade monthly options which had big time frame of 20+ trading days to expiration.
But only when you trade right ..
and when you do not fall under the trap of trading options by buying the cheap far away options.
Ask yourself why some has so much of interest in these far away option which has high open interest?
Are they really buying it all because they are trading at cheap price?
And if they are buying with such great interest, then who the hell is selling to them and ends up pocketing all premium value of the worthless options on expiry?
To make money it is not always important to know what the markets will do.
.. rather by knowing what the market will not do can make decent money for you and that too with higher probabilities of success.
It`s like the living up with the angel and devil… The angel on one shoulder says you’r trading it the right way, one that will result in a great trade and change the way you see it. Meanwhile, the devil on the other shoulder calls you a moron, born fool for taking risk and avoiding the way to make unlimited profits.
These are not the only way to trade it…
There are many many other ways to trade in the market.. Do find one which is within your comfortable zone and keep stretching…
Make big profits and achieve Sensational RESULTS.
& amp; we will keep sharing with you some more awesome ways to do it during our journey together..
We have before us a great deal of opportunity to make monstrous and sensational fortune and feel the jaw dropping miracle. And the way is … para trocar opções. And more consistent when trading bank nifty weekly options. But Responsibility to use it wisely is what makes the miracle to continue.
So, next time you think you’re ready to click Enter , go back and weed out these important killers.
Your trading will be more powerful and your profits will surely soar … B ig.
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Day Trader Lost Rs. 18 Lakhs in 5 Minutes by investing Rs. 11250 (That too in a profitable trade) - April 23, 2017 Warning: 5 Traps To Avoid When Trading Bank Nifty Weekly Options on the Expiry Day - August 15, 2016 Why Trading Every Day is a Silly Plan (And What to Do Instead) - July 10, 2016.
27 pensamentos sobre & ldquo; How to Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine? & rdquo;
Nice post….Thank you.
Amuthan.. Happy to hear that… Thanks for taking time to share your words.
Many many thanks for inspiring the New Comers.
Heartful thanks to you for sharing such words. Its really motivating for us to keep up the pace for sharing more great content. This really gives us a feeling of satisfaction for our effortful work. Thanks a lot and we are delighted that you liked our work.
Let`s work together and help the traders make a success.
I like what you write. Can you point me to any articles you have written on Technical Analysis/Derivatives Analysis/Chart Reading. In case you haven’t can you please point me to some really good resources?
Really good to hear that you like our post.
There are a lot of content available online but unsure of any crisp and clear on chart reading. As most of the content talk only about candlesticks and technical indicators.
We are working on writing content on chart reading and how traders can use chart reading to refine their trading further and get an edge just like professional traders.
Once we are done, we will send you an update on your or whats-app.
Also, refer to the Recommended Trading Books that helped us in our trading.
REALLY NICE POST AND ENJOYED READING IT.
Could you please let us know if any such tool available which takes all required data from internet FOR A GIVEN (selected) UNDERLYING and can advise us to buy/sell any particular option for the selected underlying?
The automated software’s are generally used by big traders or institutions to take benefit of mis-pricing due to market volatility. That is the reason why markets reverses very fast after big up or down moves…
Any mis-pricing generates trading opportunities for arbitrage or less risk trades..
I don`t think there is any such free tool available online which can generate buy/sell triggers. But if you got any trading strategy for options then you can find ones by exporting the real-time price into excel and using formula`s to determine the right entry time…
I am also in process to write about some option trading strategies we keep a track of. The one we shared in this same article is the one we generally use to trade during or near the expiry.
There are some option software vendors in the market but we have not reviewed them till yet. Let me try contracting some and find which are worth buying. Once we do it we will review it here on the website.. You can also share the ones here, if u find some good one. we can review it here…
By the way, thanks for complimenting and we are also happy that you loved reading it..
Sir, please excuse me. I have a request. Above post has very confusing language. Some sentences are absolutely beyond comprehension. I do not wish to criticize. But simple, short, precise structure will help novices like me to appreciate your work.
Concrete problem. In many places above you have covered call and put actions together. In some places you have talked about call, put, buying and writing in a single breath. Even an experienced option trader cannot make a head or tail out of it.
Hope you do not take me wrongly.
Dear shri Madhav Ji.
I have tried keeping things in great details as possible.. To help all get the core of the thought.. Writing in short will ease my work but feels that won’t suffice (as you adviced as per the need of the newcomers)
Actually, we have shared all the links in between to other article which relates to basics of options, bank nifty futures, etc to help new comers to get the grip on options and bank nifty..
But yes, I understand you concern and whatever questions, or confusion you have related to this article you can post it here ..and I am here to reply and solve it. Any number of queries.
Feel free to share… Will be more than happy to discuss and learn new things from traders like you..
And that what we believe in – An open environment where our readers can ask us anything they wish to.
Waiting for your all questions… Even our other readers will be happy to know new sides and problems they can face while trading bank nifty weekly options..
very helpful article.
Thanks a lot for explaining options in an easily comprehensible manner. your posts have triggered my passion for options.
Looking forward to read more similar stuff.
OH My God! I am amazed reading your thoughts.. Didn`t expected such great response…. Thanks a lot Karthikeyan for such inspiring words.. Your comment has also triggered my passion to right more great stuff.
Sir, Great series of articles. Specially this one (Turn bank nifty …).
Do you have a write up on entry price ? As an example at one place I decide that 17900 call should be shorted 14 Rs. I would decide this on Tuesday evening. But when I fire my order on Wed, the volatility brings price down to 4 Rs within first 20 minutes of trading and then not sure if there is any juice left in it. As traders we never launch market orders. How to deal with this situation ?
I am really glad that you like the work.
At present, I havn`t written much on trading and entry system but i am planning to do so asap. In your example, yes the prices generally fall much faster within the last 1-2 days of the expiry due to time value decay but such fall from 14 to 4 might be of the case that the market has opened way lower than Tuesday close.
Always it better to place in limit orders when trading the options for such small price gap as many of them have big bid and ask price between them.
The only way to deal is by either enter on Tuesday evening or trade on Wednesday the option which is more close to the index value by evaluating well what the market is going to do till the expiry… What levels it will not break.. What tops or bottoms are important… and what the market is due for.. etc.
Can anybody can tell margin required for selling call or put bank nifty ?
Margin for shorting options is more or less similar to what is required to trade in bank nifty futures. At present it is approximately Rs. 60,000.
I want to know about options selling. Here i am putting some question so plz help me by solving these questions.
1. Suppose i short sell Bank Nifty 21000 call at 20 and that time spot price is 20850. If expiry day spot price is 20950 and premium is 0.05. So i am in loss or profit ?
2. Can i buy back my short position at 0.05.
3. What will happen if i forget to square off my short selling position in the expiry day.
4. Suppose i short sell 21000 call and i am in loss and i want to hold my position till the expiry. So is it possible and if yes so how ?
5. I short sell Bank Nifty 20800 call at 30 spot – 20720 and the expiry day Bank nifty close at 20900 and premium became 55. So am i in loss ? if yes so how much loss i have to bear.
I want to answer just five question and i hope you will give proper response.
Good to see you are finding answers to your queries. I have tried to share my thoughts on the questions in detail.. Hope it helps answer your queries rightly.
# 1. When you have shorted Bank Nifty 21000 call that means you are expecting market to expire below 21000 to pocket in the full premium amount of Rs. 20. And, the bank nifty index expired 20950 so the 21000 call will become worthless i. e. becomes zero.
So, as you have shorted it at Rs. 20 and it got expired at zero, you made a profit of Rs. 20 x 40 = 800.
# 2. Yes, you can buy your short position 0.05.
# 3. Even if you forget to buy back the shorted call option – You will still pocket in the full value of premium i. e. Rs. 20 as the call option has expired out of the money.
# 4. If you have sold short 21000 call and you wish to carry the option then you need to take care of M to M loss everyday as future and options are settled everyday.
Suppose, you shorted 21000 call option at premium of rs. 20 and at the end of the day the premium rises to Rs. 30 and there are few more days left to expiry and you are still in the position then the broker will debit your trading ledger with the M – M loss of Rs 400 (40 x 10). Also, if next day the premium went down and close to Rs. 25 from the last day close of Rs. 30 then the broker will credit the ledger with the profit of Rs. 200 (40 x 5).
Also, you will have to maintain the total margin requirement which these days will be approx. Rs. 60000.
# 5. If you have shorted the bank nifty 20800 call at Rs. 30 and on the expiry bank nifty index expires 20900 then the premium will become Rs. 100 and not Rs. 55.
So, you will have to bear a total loss of Rs. 70 x 40 = Rs. 2800.
I hope the answers have solved your queries. You can further read the below article to get equipped with the basics & advanced of the options market.
Further, if you have any more questions. do share here.. I will be more than happy to answer.
Thank you very much Sir. You are doing great job to help the begainer trader.
Thanks Rajat For your kind words…. We started this with the same thought of helping new traders to not commit mistakes that we even fall into during our early days.
Hope to continue the same in the future.
Its very great explanation on Bank Nifty Writing strategies , which i ever found in I have small query on margin required for writing options . Do we need that 60k fixed irrespective of call/put premium we are writing at ( for wg., 20,30,50/- ) ? or margin varies depends on premium value of underlying strike price , which we are selling ?
There is a slight margin difference between the different strike prices where the 60K might become 65K or 70K. So, atleast you will require 60000 these days to carry overnight position in options selling.
But if you are trading for intraday say writting on the day of the expiry, then you might be able to do one lot of short selling at 20k by getting intraday MIS exposure. which requires you to square your position 10-15 minutes before the market close.
Hope this help. If you have any other query, do post it here. I will be more than happy to help.
I have been reading your insanely lengthy posts which are so detailed that i cannot but appreciate the efforts you have been putting in, in every article. Great effort.
I was reading this post and was wondering if it is possible to do weekly spreads on the nifty options ??
Do you have any articles on spreads..
Correction. I meant on The weekly Bank NIfty Options.
Till now I didn`t get into that concept… I generally trade options as an alternative to futures. Will try to pace up to learn further about options strategies…
Thanks a lot for your words… really good to hear that it helped you in some bits… You are reminding of the nights i took out to write those… Sleepless nights hahaha…

How to Trade Bank Nifty Futures?
Its always important to understand what derives the movement of the underlying specially when you are dealing with a highly volatile instrument like Bank Nifty Futures - then surely there is no escape to it.
First and foremost thing that we have to do is to learn and understand all about the BankNifty Index & its futures contract.
But if you are not the beginner then surely you can escape this.
Bank Nifty or CNX Bank Index or more preferably known as Bank Nifty is India`s second most followed economic indicator after Nifty Index.
Bank Nifty Index is a broad-based benchmark that captures the performance of Indian Banks in India and is diversified across 12 banking stocks (private & public) listed on the National Stock Exchange (NSE). These top 12 banks represents approximately 93.3% of the free float market capitalization of the Banking Sector in India as on Mar 31, 2016.
This means that out of all the banking stocks listed on NSE, 93.3% of the banking space are represented only by these top 12 Bank Stocks.
The Bank Nifty Index composition do not remains same always as the stocks which do not perform and inturn leads to a fall in their market capitalization are replaced by other banks which performs and have their market cap more than these under-performers.
Even today out of 12 Banks in Bank Nifty index only 5 are public banks which captures only 13% of the total market capitalization as on Mar 31, 2016.
Also, at present out of these 12 banks, top 5 banks has 83% weight-age out of which only one is psu bank i. e. State bank of India.
So, the performance and the price movement of Bank Nifty or inturn Bank Nifty Futures is dependent on these Top 5-6 Stocks only as rest of them do not have significant weightage.
Now comes the center of topic for this article.
Bank Nifty Future is a derivative contract traded on National Stock Exchange of India (NSE) whose underlying is Bank Nifty Index. This means that Bank Nifty futures will derive its value from the BankNifty index which in turn is dependent upon the movement of top banking stocks in the index.
To clear out here, there is no trading happens in the bank nifty index and all of the price movement are dependent on these 12 banks while on the other hand, if anyone wishes to trade bank nifty then he/she has to do so through bank nifty futures.
Bank Nifty Future is the second most trade-able and liquid equity index future with total traded contracts of 13,11,51,460, and turnover of Rs. 56,36,150.91 Crores ($ 900.48 Billion) in 2014-15 after Nifty futures with total contracts of 137,64,22,836, and turnover of Rs. 3,83,80,182.07 Crores ($ 6,131.92 Billion) in 2014-15.
Future contract on BankNifty Index was launched on June 13th, 2005.
This volume does not include the one happened in Bank Nifty or Nifty Options Market.
Let`s talk a bit about options here..
Getting into real trading is complicated & specially when it is trading options market. As a new trader, it is important to know wide scopes and opportunity in trading and make your trading task more simple. Visit Part VII – Getting Started With Trading – How to Trade Options? to get into the basic understanding of the options market.
If you are unfamiliar with options trading, then let us state here that options contract is the right, but not the obligation, to buy or sell a particular futures contract at a specific price (strike price) on or before certain expiration date.
And if you are familiar with the basics You might have read and heard million number of times that the risk with buying options is limited to the price of the premium paid. Certo?
But Do You Know that we can even get trapped and lose more than the value of the premium even when you are buying options and what if I tell you that you can incur loss even after having a profitable trade.
Then you really need to read the article below which talks about the Trap with Trading Options that You Must have Never Heard Before..
Read Warning: 5 Traps To Avoid When Trading Bank Nifty Weekly Options on the Expiry Day to know how the theoretical adage of limited loss when buying options is not completely true in all of the cases and how to avoid one of the biggest trap of what we call as a “Contract Shock” .
Read to know how to big professional traders make sure consistent money from trading bank nifty weekly options by writing the options and putting the benefit of the time value decay in their favor. Also, how they use weekly bank nifty options to buy the markets instead of taking positions in the bank nifty futures… How to Turn Bank Nifty Weekly Options into a Regular Income-Driving Machine?
Lets come back to Bank Nifty Futures…
Sorry to divert it and take this interim break from futures and get into options.
But it was really important….. Trust me.
Contract Specifications of Bank Nifty Futures.
To understand in detail all the key terms or terminologies used and how a futures trade work in the real market, Read Article: Part VI – Getting Started With Trading : How to trade Futures Market?
Want to be a full-time trader? But this is the first time you are dipping your shoes in the trading world. Then do spend some time reading the article and other links shared with in to help you getting started with understanding all what you always wanted to know about making money from trading or investing in India.
Here are eight steps to follow to start making money from trading. How to Make Money from Trading in Indian Stock Market?
Planning is crucial for the success of any business. So to get started with trading you need a proper plan, a plan to design a road map to follow to achieve you trading goals .
“Every aspiring trader should emphasize the importance of developing a System of Trading by framing up a trading plan with a long term trading objective which can help them to stay in the markets and protects their capital forever, a system that helps make consistent profits from the market and restrain the trader from making similar mistakes again and again and more importantly a trading system that gives a trader A REASON TO TRADE.”
Capital Required to Trade Bank Nifty Futures.
Bank Nifty futures has a lot size of 40 units per contract for which an initial margin of Rs. 62000 is required which is approximately 8.15% of the total contract value of Rs. 7,60,000 (40 x 19000) on Oct 7th, 2016 i. e. we have to deposit an initial margin of approx Rs. 62,000 to initiate a long or short position in bank nifty future and carry it till the expiry of the Contract i. e. Oct 27th, 2016 (provided we have a ledger balance to take care of any daily mark to market losses (M-M Losses)), if any.
There are two options available for future traders to meet out the margin requirement for the contract obligation.
Cash Margin – Bank Nifty traders are required to deposit approx Rs. 62,000 for initial margin in cash to their broker. By cash here, we mean a clear credit balance in the Ledger of the trading account with the broker. Stocks as Collateral – To meet out the initial margins of the future contract, stocks can be used as a collateral with the broker to take the day position or even for the positional.
By Stocks as Collateral, we mean that if you are holding some stocks in your DP account, then same can be utilized as the security margin, provided such stocks are under approved list and the total value of the stocks (After haircut) is enough to meet out the margin requirement of Rs. 62,000.
So, if you are holding A-category stock (Eg – Dr. Reddy) in your DP then 80-90% of the value of the stock can be used as a security margin. So, there is no need to deposit the cash margin or a clear ledger balance.
For traders, who don’t have any holding in their DP, and are maintaining a clear ledger balance in their trading account can buy Liquid Bees of the same value of Rs. 62,000 (i. e. 62 units) which can be used as a collateral for the margin money and same can fetch you approx 5-6% return in a year.
In year 2014-15, Liquid Bees has generated a dividend return of 5.712%. For more. visit Dividend Calculator of LiquidBees.
So, traders who are planning to use the DP Stock or Liquid Bees as a collateral for the margin security are required to take care of any mark to market losses, if any.
So if you have a loss in your first trading loss of say Rs. 2000, then you have to pay your broker Rs. 2000 or sell stock or liquid of the same value.
But on the other side, if you have your first trading profit of say Rs. 3000, then this amount will be credited to your ledger and now you have a clear balance of Rs. 3000 to take care of any mark to market losses if any in the future.
Suppose, we have deposited a total capital of Rs. 70,000 for trading purposes then Rs. 62,000 will be debited in the ledger by the broker if we will carry the position overnight.
Day Traders can trade BankNifty futures by getting intraday exposure provided by brokers by having only 1/3 to 1/2 margins of the actual required i. e. Rs. 20,000 – 31,000 in their ledger thus over-leveraging the leveraged vehicle but no position can be carried overnight or against the stocks holding in their DP as discussed above. (Not advisable for Beginners)
Number of Contracts to trade?
Beginners should only start trading with one lot size (i. e. 40 units) to first understand the mechanism of the market and know how well their trading strategies performs and once they start to make consistent profits from the market and their capital starts to grow then only they should increase the lot size to trade.
So, if you are able to double your capital and had a margin requirement fulfilled for another lot from your profits rather than adding up a fresh capital, then add with one more lot size and start trading with 80 units (i. e. 2 lots).
This basically proves the fact that you are learning the trading business and now you are ready to take more responsibility for trading bigger contract size than before.
Capital protection should be the utmost priority for any trader especially when you are trading a high leveraged and volatile product like BankNifty Futures.
So, every trader should develop a risk management mechanism which can help to save their seed capital and protect the profits too. Always protect your trade by using stop losses whenever you buy or sell short BankNifty Futures.
Traders should not ever risk more than 5% of their capital to any single trade i. e. a maximum stop loss of Rs. 3100 (62000 x 5%) or 77 points. Stop loss could also be set fixed according to risk profile of the trader.
We usually take smaller risk of 20-40 points (i. e. Rs. 800-1600) on any single trade be it day trade or positional by entering on smaller charts to take low risk trades. Then market will have to prove us wrong atleast 38 times to knock us out of his capital of Rs. 62000.
So, do not enter the trade if you cannot decide where to place your stop losses. Stop losses are your protective tool and will always keep you alive.
This will generally help you to achieve a higher end of Risk : Reward ratio by taking more points when you are right and giving our small whenever you are wrong. Even a accuracy of 50% will ensure that you are profitable at the end of the year or month.
Read Article: How to use stop losses to reduce your risk? Em breve.
Read the article 12 Step-wise Trading Rules for New Traders to be Safe in the Market to frame-up and understand the most important rules and aspects of trading for the survival and growth of a trader:-
# 1. Never being too Anxious to Start Big Early.
# 2. Knowing Who You Are – A Trader or An Investor or An InvesTrader?
# 3. How to Choose & Know Your Market to Trade?
# 4. Reasons & Facts to Trade.
# 5. How Not to Screw With the Market – How to Follow the Trend of the Market?
# 6. Know Where to Place Stop losses to Protect Your Capital & Profits?
# 7. Evaluating Risk to Reward of Each Trade.
# 8. Never Changing Your Stop Losses with Good Reasons.
# 9. How to Trail Stop losses to Protect Capital & Profits?
# 10. Knowing the Reasons to Exit a Trade.
#11. Never OverTrading.
#12. How not to have too many Open Positions at any time?
What returns to expect from Trading Bank Nifty Futures?
It depends on the expectation of the traders. But the easiest way is to target it according to your stop loss i. e. by calculating return: risk. Beginners should focus and target on achieving 2:1 trades and as soon as your experience and market knowledge improves you can target the higher side of the Return: Risk scheme to 3:1 then 4:1 etc.
This means that for every day trade, if you are taking a stop loss of 30 point, then target your profits of atleast 60 points.
But as your trading experience and knowledge starts to grow, you can strive to achieve a differnet trading style to take big trades of 300-500 points on BankNifty futures with small risks of 20-40 points.
As we are trading a 10:1 leverage product, so any 1% move in BankNifty will be a 10% return on your capital.
The idea here is to strive and achieve the higher end of the Risk : Reward with more trading experience and knowledge of the market so that we can make our trading on some fronts were we have the ability to make big profits from a single trade with less managed or even no risk at all.
Read Article: Where and how to protect and book your profits? Coming Soon…
Time Frame to Trade Bank Nifty Futures (Whether Day Trade or Positional Trade)
Its actually both. Try to know a market very well that it starts to talk about it by itself what it us going to do in the coming hour, or day or week or the whole month or year.
So always start with big charts because small moves are the part of the big moves. As big players prepare and trade for big moves, they undergo preparation for the few days to weeks or months as someone who is managing some $50 billion will not be entering and exiting the market very soon.
It takes time for them to accumulate and distribute that is why when a trend starts it stays for long – For Days to Weeks to Months or Even Years.
It s always important to follow the big players.. They are the one who knows more than us or are an expert in their business, or we should say Market Knows More Than Us. So, Always Follow The Market .
When market is showing weakness – Go With It . Don’t start feeling bullish till it shows you signs of buying or bullishness.
Always start with analyzing and finding trades on the big time frames (Daily or Weekly Chart) then get into the intraday charts (continuous) 5 min, 15 min or 30 min and keep a close tab on the market movement to get a closer entry and with small risk.
Then as soon as you enter the market and you have placed in your stop loss, then again go back to the bigger time frame and see how well the market is performing according to your expectations.
Avoid the trap of thinking that trading everyday is the key to success in this business. It is actually a myth. And the only reason why 95% of new traders incur losses and fail in trading. Why Trading Every Day is a Silly Plan (And What to Do Instead)
My style is to watch EOD, Weekly and Intra-day charts all together. Our Minute and EOD charts are always in-sync with each other. By minute chart we don’t mean we are just watching the chart for a day, rather minute chart for the whole month or two or more.
As EOD don’t tells us what the market has done within, so to get a feel of it, we try to get in. So any setup on EOD charts or big 15min charts led us to enter the market on small charts and whenever we are not able to get a point what the market doing, we stick to intra day charts and trade for the day. And scalp the market..
A trader needs to have two different brains working simultaneously to get in deep of the intraday chart to understand whether the markets are showing patterns of selling as indicated by the bigger charts or when the markets are not doing so then evaluating whether to trade with the short term current patterns or wait for these patterns to get in sync with the bigger time frames.
So for day trading it would be for 100-400 points as market has an Average Daily Range of 400 points. So on an average, we can get 400 points any day.
Maintain minute charts on software like NinjaTrader or Amibroker or Metastock and analyse the past market movements to get an understanding of market movements, and its habits. Get Min data for banknifty futures from here.
Those who are working or don’t have time to watch the Markets intraday, can maintain a EOD chart on the software.
When to Trade Positional & When to Trade Intraday?
A dilemma every new Bank Nifty Futures Trader have..
There are times when the markets are forming big setups and patterns on big charts (EOD Charts) so it becomes important for traders trade these big moves on big charts to earn big profits.
These situations necessarily requires traders to look the market in bigger context and keep entering the markets in bigger way by keep on pyramiding with the favorable moves.
So it becomes important to know why you are trading it? Like we have a rule while trading stocks that we never let our trading calls becomes our long term investments. Similarly we don`t have to let our day trade become our positional trade because we are fearful in booking our loss in intraday.
Therefore, it is always important to know whether you are planning to enter for intraday or positional?
Read the story of inspiration of a young dreamer who started back in 1985 at the age of 25 years with limited capital of only Rs. 5000 but with big dreams, who spent day and night to understand the rules of the games, whose courage and dedication made him a billionaire & surely one of the most followed and respected investor / trader in India & across the globe.
The one who broke all the fixed rules of trading and laid down the foundations for others to follow.
Some of you might be thinking this while reading the above thoughts but really intraday charts are very important because they actually help us in managing our risk. We cannot take up a risk of 500 points on Bank Nifty futures when trading with say 800 units (20 lots) or 1600 units (40 lots). This will be a risk of Rs. 4,00,000 or Rs. 8,00,000 on a single trade.
So, whenever we are planning to achieve on trading the big lot size of the market, the only way to stay in the market is by managing the risk. So, the idea is to take risk of say average 40 points on 800 units or 1600 units and take risk of Rs. 32,000 or Rs. 64,000 by entering the markets on the smaller charts (1 Min, 5 Min or 15 Min) by having a big time view on the bigger time frames.
Even the risk stated here can be further reduced and later turned to “ Risk-Free Trade ” by following the rule of pyramiding by entering the trade in different tranches whenever the earlier position shows you a profit.
Such a strategy can help you to trade any number of lots or quantity to attain biggest profits possible at No Loss.
Pyramiding Rule for Entering & Exiting the Market – Em breve.
Why Not Trade Nifty Futures?
As Nifty has a small Average Daily Range as compared to Bank Nifty. So it reduces the probability of big profit as compared to the one possible in Bank Nifty. As we are planning to manage our risk by using small stop losses and protecting our capital. Then its OK to trade high beta index like Bank Nifty.
Beginners can start with Nifty Futures then later supplement your study to Bank Nifty Futures.
Deciding the parameters to trade is one side of the game and getting in and applying into the market successfully is the other and yes more important one. So, before gushing in and entering the trading arena, the first and foremost thing that a trader should do is “Know Your Market” .
Back-test each technical tool you know to the bank nifty futures market and see what really works for you. Try to filter out the tools which you feel fits under your belt like retracement, double or triple tops or bottoms, etc.
The idea here is to be an expert in one market. So, its better to know more about a market then knowing some about many markets. So, start analyzing the markets on bigger as well as smaller charts and try to understand the habits and characteristics of BankNifty Futures.
Knowing a market or a stock in deep will give the trader/investor a positive edge that will help him to manage his risk wisely, be safe and remain in the market forever. Ask yourself how can you make it big trading & investing stocks or markets you know nothing about?
Don’t trade when the markets are violent. It always make sense for traders (specially new ones) toto enter into a trade when the markets are silent and exit when the markers becomes very violent.
Trading volatile marketsmarkets surely gives a trader an excitement and eagerness to make big profits but even many professional traders avoid trading when markets are very volatile and specially on some news days or events.
Excitement within the traders even force them to trade the violent marketsmarkets by entering the long trades when the markets are having a big blow up and forgetting all their money management rules of trading with close stop losses which surely forces them to enter the market at wrong time and at wrong prices and incur big losses.
Human element is a very important aspect in trading as market consists only of human beings. They are the one who regulate and trades in the market.
So, markets are surely governed by the human characteristics and behaviors and the factors which influence the behavior and psychology of people also influence the markets. To be successful in a human managed and governed business, its a prerequisite to understand the elements which controls and govern our behavior.
Trading decisions which are based on any unknown reason will lead to only one result – Losses & Yes More Big Losses.
A well defined trading plan which is according to your trading style will clearly state your plans to enter and exit a market, rules to protect your capital & profits, and number of trades you are restricted to take and many more.
Trading journey is all about transforming yourself from an inspiring trader to a “Great Trader”.
Any successful trader learns how to control and reduce the element which will force them to commit mistakes and prevent them from making money and being successful. And one of the biggest among all those is Human weaknesses.
Traders should prioritize to understand and learn more about human behavior and psychology that can help prevent them committing similar mistakes again and again otherwise people with snatch your money away from you and believe me they won`t feel bad at all.
# 1 & # 8211; Being Too Optimist Or Too Pessimistic.
# 2 & # 8211; Trading on Hope & Fear.
# 3 & # 8211; I Know It All.
# 4 & # 8211; Quick Rich Philosophy.
# 5 & # 8211; Its Not My Mistake At All.
Our ultimate objective of trading Bank Nifty Futures is to develop the trading skills that can help us be consistent in your analysis, trade implementation, execution, staying in the trade and exiting the trade with big profits in hand. So develop the real inside to trade pre-determined setups or patterns and places to get some confirmed points with big volumes and lower risk edge.
The objective is to start with Trading with one lot size of bank nifty futures to learn the mechanism and reach to the higher end of the Trading volumes of 800 or 1600 units or even more than that.
So, start with Trading one lot, make consistent profits, double your margin money and keep on increasing your lot size to trade without adding any fresh capital. So, the initial objective of any new trader trading with one lot size should be to earn Rs. 62,000 in profits so that you can achieve trading two lot size without putting any new capital.
So, to achieve this objective, traders need to achieve a profit of approx. 1550 points to earn Rs. 62000 in profits and reach to target of trading two lot size.
Once you achieve trading two lot size of BankNifty futures, we need to get only 775 points in profits to achieve the target of reaching three lot size and then 516 points to earn 62000 profits with 120 units and then 387 points with four lot size to earn Rs. 62,000.
Suppose with trading 1 lot, you have developed your trading skill and getting consistently on an average 100 points in a trade i. e. making Rs.3000 per trade then you need not to make wide changes in your trading rules but what you need is just increase the lot size to trade (from the profits you make) and reach the higher edge of trading with say 4 lots and making some Rs. 16000 per trade.
Or even if you starts to make say 50 points per trade with 4 lot size, the. It will be Rs. 8000 per trade.
Double reward and that too with half efforts.
Taxation of Futures Trading in India.
If you are trading futures & options on a recognized stock exchange, then you have to declare yourself as a Trader for taxation and your trading will be considered to be as a business activity & will be taxed as Business Income.
As per our tax rules in India, any income from trading Futures & Options (F&O) (Equity, Commodity or Currency) is considered as Non-Speculative Business Income .
These income must be added to your total income and taxed according to your new respective tax slab.
As these incomes are considered as business income, so you can offset it to reduce the taxable income from Speculative/Business Income with business expenses you incur to earn it like Brokerage Charges, Internet Charges, Advisory Fees, Research Reports, Computer & electronics Depreciation, Electricity Bill, Telephone, Software & Data Feed Charges, Newspaper, Books, STT and rent, etc.
Any loss arising from trading F&O will be considered as Non Speculative Business Loss and can be offset against any other business income including speculative business income (Income from Day Trading) except salary in the same year.
The balance, if any, can be carried forward and set off only against non-speculative business income within eight assessment years immediately succeeding the assessment year in which the loss was first computed.
We traders are obligated under the income tax law to file their returns before July 31st and it is September 30th for companies.
All the taxation rules for an trader is illustrated and detailed in Section – II of the article Part VIII – Getting Started With Trading – Tax Guide for Traders in India.
Day Trading Bank Nifty Futures.
Average Daily Price Range.
Chart 1 – Bank Nifty Future (Continuous) Daily Chart with Average Daily Price Range.
Since 2014, BankNifty Future is trading with a average daily range of 220 to 315 points.
This means that any day trader who is smart enough to understand and enter the market at the days` low price can expect a profit of at-least 220 point i. e., Rs. 88000 (40 x 220).
Similarly, on the other hand, the trader who is misfortune to buy the market at the top of the day and don`t follow the risk management mechanism (Stop losses) can expect a minimum loss of Rs. 8,800 any day.
Avoid the trap of thinking that trading everyday is the key to success in this business. It is actually a myth. And the only reason why 95% of new traders incur losses and fail in trading. Why Trading Every Day is a Silly Plan (And What to Do Instead)
Also, if you have been trading futures market, then its important to note that trading is all about planning and following your trading rules strictly and nothing else. So, preparation is generally the key for the success of most professional traders and for traders it all about understanding the importance of designing a trading plan and implementing it.
They are no different than us, but just they remain stick to what they planned and follow it blindly. There are 12 Step-wise Trading Rules for New Traders to be Safe in the Market which can help you stay in the market forever and be successful.
And there is no better way than to learn from the Legends themselves. Refer to the below books, movies and other recommended books on investing and trading to help you learn how some of the successful traders or investors deal with their losing steak, recovered from the bad days, make a mark from this business and made millions.
Start with paper trading to get the understanding of the futures market and developing of the trading strategies and plan. Do not be anxious to trade big in the beginning.
Visit our NSE EOD Data Resource Center to download the BankNifty Spot & Futures EOD (OHLC) Continuous data.
Intraday Data for BankNifty Futures.
Day traders will require intraday data to trade BankNifty futures. Minimum time frame required is one minute data.
Visit our NSE Intraday Data Resource Center to download BankNifty Futures Intraday data.
For New Traders, Here are a couple of articles to help you learn more about Futures Trading, Important Aspects of Trading, Taxation of Futures Trading in India & get inspirations from Trading Legends.
KNOWLEDGE IS POWER!
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Day Trader Lost Rs. 18 Lakhs in 5 Minutes by investing Rs. 11250 (That too in a profitable trade) - April 23, 2017 Warning: 5 Traps To Avoid When Trading Bank Nifty Weekly Options on the Expiry Day - August 15, 2016 Why Trading Every Day is a Silly Plan (And What to Do Instead) - July 10, 2016.
22 thoughts on “ How to Trade Bank Nifty Futures? & rdquo;
great work. Really enjoyed reading. Obrigado.
Well detailed & yes simple to understand.
It really helped me a lot to prepare for my trading. Rules on managing risk and starting small really make sense for a trader like me.
Feels like written by a trader himself.
Thanks for sharing great ideas. Waiting for more awesome work..
Really a very useful matter for beginners…thanks for sharing.
topic is very helpful for beginners like me, thanks 4 promptly sharing best ideas, also want to know how to adopting(best) indicators for intraday trading, sharing ideas will be appretiated, thanks again……….
Cleared a lot of doubts from my mind. I am trading from last few Years but at the end I am always on the losing side as i kept on losing what I make every time.
Also.. Awesome article on preparing a Trading Plan.. please share some ideas and ways for trade entries..
Continue com o ótimo trabalho. Really Inspiring.
Thanks Sumit for your appreciating thoughts.. Yes, maintaining a great balance between the reward to risk ensures survival and growth for any trader. Will surely share some of the setups we use for Entering long or short positions..
Inspiring comments always motivate us to share more amazing and inspiring thoughts.. Thanks Sumit for sharing the word.
Amazing article. Mantenha o bom trabalho.
Thanks SriKanth for your positive thoughts. Motivating words always inspire us to write great content.
Also, thanks for taking time for commenting.
Great please read for beginner…helped me a lot.
Thanks a lot for your wonderful & motivating thoughts. We are really happy to hear the positive outcomes of our heart full efforts & initiative to help traders across to be independent and learn the skill of trading.
Also, we are very happy to know your interest and willingness to learn about the markets and the opportunities available.
As you are a beginner to the trading world, we recommend you to please take some time and read the below articles to help you learn the importance of formulating your trading plan & strategies, rules to be safe in the market forever to achieve your trading goals :-
Please let us know if you have any further questions; We are more than happy to help.
I just stumbled upon your website. I am NOT trading the Bank Nifty futures currently. I was wondering if you could clarify my confusion. In your article “How to Trade Bank Nifty Futures”, you mention that one index point move is equal to Rs.30 profit/loss. So that means if Bank Nifty moves from 15000 to 15050 (a total of 50 index point move), the total profit/loss will be 50*30: Rs. 1500 on one trading lot.
But when I plug in the same values in my broker’s brokerage calculator,
I get a profit of Rs 43 (after brokerage and taxes of course). My broker is Zerodha.
Could you please clarify my confusion?
Obrigado pela ajuda.
Thanks a lot for writing in.
Regarding your question on Bank Nifty Future. The present lot size of Bank Nifty Future is 30 units which means any trader who wishes to trade in Bank Nifty Future has to take position of minimum or in multiples of 30 units.
Let`s take the example as you mentioned. if Bank Nifty future is currently trading at price level of 15000. So, you have to take a minimum position size of Rs. 15000 x 30 i. e. Rs. 4,50,000. If you purchased Bank Nifty Future 15000 and sold 15050 then you make profit of 50 x 30 = Rs. 1500.
So, as per your question regarding in your broker`s brokerage calculator, you have to change the quantity to 30 instead of 1. That will give you correct picture of the profit & loss situation.
To extend it further, Nifty Future has a lot size of 75 units which means you have to take minimum position of 75 units or in multiples of 75 (75 / 150 / 225) units for 1 lot / 2 lot or 3 lot size. So, any one point change in Nifty future will give you a profit or loss of Rs. 75. So, when you are calculating for Nifty Future in your broker`s brokerage calculator, put quantity as 75 units instead of 1.
Also, when you are trading stocks or equities you can buy or sell a minimum of one unit but when you are trading futures market, there are minimum lot size where the minimum contract value of any futures contract (Index or Stock Futures) should not be less than Rs. 5 lakhs.
You can refer to the articles below to get answers to your questions. These will give you a better understanding on Trading Index Futures, and learn more about money management and trade management rules.
Please let us know if you have any further questions; We are more than happy to help.
First of all i’d like to congrates the team for this wonderfull, motivating initiative Justtrading. in,
I want to thank author for this inspiring & guiding article for me and for millions others like me.
Sir, my name is amit, a research student, i want to learn trading options but now at current scenario of hiked lot size, will it b a smart choice for person with limited money in hands as the mobile shop person in this article tradeacademy. in/the-good-the-bad-the-ugly-of-sebis-fo-contract-size-hike-a-traders-view/ what are the alternative we have now to get in to FnO segment ? Pl Guide.
Thanks a lot for taking you time for sending us your wonderful and motivating thoughts. We are really happy to hear the positive outcomes of our heart full efforts and initiative to help traders across to be independent and learn the skill of trading.
Also, we are very happy to know your interest and willingness to learn about the markets and the opportunities available.
Please bear with us for this big reply.
Regarding your question for a trader with limited resources, We believe that “Big Businesses are big because of Big Ideas not Big Money” and we have a strong belief that “ALL GREAT THINGS START SMALL”.
Also, being a trader myself, I strive to learn and improve my market knowledge & understanding so that I can achieve higher end of Reward to Risk.
The idea here is to be good with your market research so that you can enter the market with very small or less risk. So, for this hiked lot size, the trader has to prepare a trading plan with strict money management rules which can help him manage and risk small part of his capital on every trade.
And as the article Have you ever Wondered why Starting Small always Work in Trading Business? says, at first learn the mechanism of the market, structure and formulate rules your trading plan & strategies, putting your strategies to test, trading on facts and strictly following your trading plan and strategies and keep on refining it to achieve your trading goals. Then you will be in a position to look at the nuggets all together.
To put it simply, if you are trading Bank Nifty Options then understand the mechanism and price movement of Bank Nifty Future to come up with some directional and trading view on the index so that you can enter the market very close to the reversals with strict stop losses in options. You can also refer stop losses as per the Options Chart. Then keep on refining your trading system and plans accordingly as per the results.
So, start analyzing the bigger time duration say Weekly, Daily & Hourly chart of Bank Nifty Futures and get in close by analyzing the small time frames like 15 or 5 Minutes to get close entry level with small stop losses. Take a directional view as per the big charts and setups and take close entries on the smaller time frames to achieve higher reward to risk ratio, i. e. Risking less to Reward with more on every trade.
One day, you will be able to enter the trade with very small risk and hopefully with very large number of lot size.
We truly believe that learner and effortful people like you will surely have a reward full and better trading career. All the very best.
You can refer to the articles below to get answers to your questions. These will give you a better understanding on Trading Index Futures, Learning from the Story of Trading Legend – Jesse Livermore, and how to frame a trading plan and learn more about money management and trade management rules.
Thanks for giving us an opportunity to serve you and we are very happy to connect with the traders like you & be of any help.
Please let us know if you have any further questions; We are more than happy to help.
Great written . i really liked it. I m not a trader but i want to do so . so i am reading articals and watching cnbc zee business etc since a long time. Tpday i fount this site and read this artical now i am prepare to trade with small risks . obrigado.
Thanks Mahendra. We too were under a lot of ambiguity when we started. Thatswhy we started this website and writing posts to help our new dreamers to get started.
Happy to know it helped you and motivated you to enter the arena in a right way. Looking out for more awesome thoughts from you..Do let us know more about your improvements in trading. Felicidades.
To the point articles and resources which are informative, educative in an easy to understand language and style. Highly appreciate your trading strategies.
Thanks for your kind words… Feeling refreshed and awesome to read your thoughts. You`r Awesome.
I want to trade Bank Nifty but I am confused as to how much tick size and tick value is. If I use 1 lot Bank Nifty at 8000 buy and get stopped out at 7950, how much have I lost? How much movement is 1 Index point? How much will I lose?
I can understand your concern.
Let me try and clarify. There are two different index futures. Nifty & Bank Nifty. The levels you are talking about is of Nifty Futures. As Bank Nifty is trading at some 18000 levels.
Here, Nifty Futures has a lot size of 75 units where as Bank Nifty has a lot size of 40 units which means 1 price movement in Nifty is Rs. 75 while in case of Bank Nifty it is Rs. 40.
So, as in the case you mentioned, if you bought nifty futures at 8000 and stopped out 7950 then you will incur a total loss of Rs. 75 x (8000-7950) which is Rs. 3750 (75 x 50).
How did you find that weights of banks on Bank-Nifty?
The weights are based on the market capitalization of banks in the banknifty. The bank whose marketcap is higher will be given high weightage and so on. The current weightage as on MAr 31, 2017 is HDFC Bank Ltd. 31.90%, ICICI Bank Ltd. 17.64%, Kotak Mahindra Bank Ltd. 11.41%, State Bank of India 10.24%, Axis Bank Ltd. 9.12%, IndusInd Bank Ltd. 7.83%, Yes Bank Ltd. 5.59% etc.