How to trade bank nifty intraday?
If you are an Intraday trader you might be thinking about how to trade in bank nifty in intraday? So the answer to your question is that You can trade in Nifty and Bank Nifty in the derivatives market with the National Stock exchange. As it has a very small lot size i.e 25 quantity per lot. So the minimum investment required to trade is only INR 10000 in Options and INR 25000 in the future segment. Trading in the derivatives market is not allowed in BSE i.e Bombay Stock Exchange.
Details of Niftytips and Bank Nifty tips
Nifty is the Index of Nse and it is calculated by calculating the moving Average of Top 50 Companies. Similarly Bank Nifty in the Index of top 12 banks. So, when you trade in Nifty tips or Bank Nifty tips means it means you are trading of the average of the stocks. There is no underlying asset for the same. Their fore you need to be very careful while marking the trade-in Index. Presently Nifty 50 is running around 11800 and Bank Nifty is trading around 24500.
is the Index of Nse and it is calculated by calculating the moving Average of Top 50 Companies. Similarly Bank Nifty in the Index of top 12 banks. So, when you trade in Nifty or Bank Nifty means it means you are trading of the average of the stocks. There is no underlying asset for the same. Their fore you need to be very careful while marking the trade-in Index. Presently Nifty 50 is running around 11800 and Bank Nifty is trading around 24500.
Calculations of Nifty And Bank Nifty in Intraday ?
Initial Capital you have in your Demat is let’s say 10K and if you trading in options today you got a recommendation
“BUY NIFTY 11850 P.E at 12-14 SL 5 TGT 35/50/100.
12(Market Price) * Lot Size (25) = 300 ( Investment)
so if you invest just 6K in this recommendation then
6000/300 (total investment/price per lot) = 20 lots you can trade with
so Total Quantity bought is 20*25 =500
lets Say 1st target is achieved then the profit you would have book would be 35-12 (target price- buying price) = 23 (Profit booked per unit )
Profit booked in is (Profit booked per unit )*(Total Quantity bought) =
23 * 500 = 11500 (Total Profit Booked)
Investment 6000 and profit booked is of 11500 in single trade
profit in single lot = 23 *25 = 575
i.e if we calculate in percentage of return on investment
575/300 *100 = 191% Return on invesment on first target itself .
Lets say if it would have been in negative side then loss per lot would have been
12- 5 (buyingprice – sl price) = 7
7*25 = 175
So, Risk Involved is of INR 175 per lot in case of profit it would have been 575 per lot .
So, utilize your investment in best way and learn in details about investment by our expert’s .
How to buy Bank Nifty ?
You can buy Bank Nifty in Derivatives Market of NSE . In Futures trading you can buy it in specific lot and in options you can buy it as a call or put of particular strike price .
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