Meaning of delivery based trading

Posted by smartadmin on

Intraday trading refers to buying and selling stocks within the same trading day. Delivery trading, on the other hand, is when you buy shares and keep them overnight, and then take delivery of the shares. Most brokers usually charge higher brokerage on Delivery trades compared to intraday trades.

How to be successful in intraday trading?

Posted by smartadmin on

A bit of good advice is to trade following the latest or current market tendency. Sell first and buy later if the market is on the downside, and vice versa. Make sure you develop a plan for intraday trade and stick to it. Set up a desired profit and stop-loss limit.

Finding best intraday stock

  • Avoid high volatile stocks
  • Observe the market trend before you decide on which stock is right
  • Trade in liquid stocks only
  • Trade in good correlation stocks
  • Ensure you research, and select the stock you are most satisfied in afterward.

What is Nifty Weekly expiry?

Posted by smartadmin on

Nifty weekly options contract specification takes place on a weekly basis – every Thursday. If the day (Thursday) falls on a trading holiday, the initial trading day will be the last trading day. On the expiry day, all contracts will expire at the closing time of the regular market.

What are the benefits of nifty weekly options contracts?

Posted by smartadmin on
  • Because of shorter maturity periods, weekly options command a lower premium. Thus, weekly options are more affordable than monthly options.
  • Traders can take bigger positions for similar capital outlay just as monthly options.
  • Weekly options offer Arbitrage opportunity between:
    • Weekly and monthly options
    • One week to maturity options and two weeks to maturity options.
  • Liquidity will improve on account of low cost, encouraging more participants to join.
  • Weekly options facilitate improvement in market depth and better price discovery.
  • Participants in the market can also take a short-term view of the underlying.
  • Participants in weekly options are offered short term insurance for their short-term portfolio, leading to improvement in market depth and better price discovery.