You must have heard people speaking about making money in share market. Earning more than 1lac by just investing an amount of 20 k…. ever wonder how is it done? so let me share the answer with you. This miracle happens in option trading. Which is the most important segment of the share market? people use intraday trading strategies to do this. It is also known as Day trading. By the term intraday trading, we mean buying and selling shares on the same day. The trading time of the share market is from 9:15 am to 3:30 pm. This means you have to buy and sell within this period if you are doing intraday trading.
The option market is really a miracle market. Here we can trade with the lowest investment as low as 20K. But 50K is usually recommended for doing safe trading. Here in this market, we trade on minimum risk for maximum return. For example, if you buy a product only for INR 20 the risk of 20 RS is involved in it. You can lose 20 if its prices reduce to zero but what if I say that there is more probability of the price rising to 100 or 200 or 500 or even more then will you be ready to put your Rs 20 on risk.
Let’s assume you bought it at 20 and sold it for 100 total profit. 100-20 = 80 . On 1 unit of if you had 20K then you would have bought 1000 units of the same. Profit on the 1000 units would be multiplied by 80(profit per unit) i.e 1000*80 = 80000 profit. The investment required was only 20K.In the same way, it is done in the options market.
In option market, investment is not a problem. Here you don’t have to pay share price instead you have to pay the premium price. Know more about how to trade in option markets .
Most favorite segments of the day traders are nifty50 and bank nifty options as it has much volatility and volume. So if you are looking to start up your investment in the share market starts today itself in the options market.