Basics of banknifty derivative – how to trade future & option (call put)Stock-Options-Trading
Bank Nifty Option Strategy and Tips ,
bank nifty weekly options strategy,
bank nifty option strategy,

BANKNIFTY is an index crearted to measure upside or downside in banking stocks including both PSU bank as well as private banks.

PSU stands for Public sector undertaking means all govt banks.

This index could be traded in national stock exchange in derivative section.

Lotsize of bank nifty is 40.

So if banknifty is running 25000,

then total value of lot is 25000*40= 10lac

If you want to trade future of banknifty, then you need to pay 15-20% margin for this .That would be 70000 to 1.2lac.

If you bought banknifty future @25000 sl24950 (SL 50pt)

total stoploss value is 50*lot size = 50*40=Rs 2000/-

If banknifty moves up by 1% in a day then it will be 1/100*25000=250pt

so total profit will be 250*40=Rs 10000/-

IF you do not have enough money to trade future or you don’t want to take that big risk, then one can go for trading option (call or put)instead of future.
Bank Nifty Option Strategy and Tips ,
bank nifty weekly options strategy,
bank nifty option strategy,

Option need much less capital comparatively & risk is limited.

buy banknifty call @rs 200 premium,if you think that banknifty will go upside.

you need 200*lot size= 200*40=Rs 8000

total risk 8000 only.

If banknifty goes up then it may increase  upto 250,300 or 500.

If you sell call@300.

then profit is sell price – buy price=300-200=100pt*lotsize

profit will be 100*40= Rs 4000

You can put stoploss of 20pt means if it goes downside,

your loss will stop by 20*40(lot size)=800

If you think that banknifty will go downside,

you can buy PUT of banknifty.

PUT gives profit when underlying (banknifty) goes downside.

Suppose you bought 24300 strike price PUT@Rs 100 premium.

Premium varies as per near & far strike price.

NEAR strike price have HIGH premium.(price for call or put)

FAR strike price have low premium .

(near or far from cmp of underlying)

Everyone can learn to trade in future & option easily at home .

biggest career in pocket money with total freedom.
Bank Nifty Option Strategy and Tips ,
bank nifty weekly options strategy,
bank nifty option strategy,

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