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Showing posts from December, 2019

How to minimise loss in bank nifty

Things you must know before entering in trade to Bank nifty? An index comprising 12 state-owned and private sector banks. Like the Nifty, those bullish on banks can buy Bank Nifty futures comprising 30 shares, or buy a call option on Bank Nifty.  Bears can similarly short or sell Bank Nifty futures or buy a put option on the index. Yes, it is possible to trade nifty or stock options intraday. Many traders do it by opening a position at the start of the day and closing it at the end of market hours. The process to do intraday trade is similar to making any Options trade. However, keep an eye on two important data: volume and price fluctuation. There should be sufficient volume in the strike price so as to sell it whenever desired. Also, the index needs to have sufficient price fluctuations to make a profit in a day.  A call option in Bank Nifty gives you the same right, as any other option, to buy the underlying at a specified price and with a specified time period. The same holds f