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Friday, 30 October 2015

How To Trade in Nifty Futures and Options

How To Trade in Nifty Futures and Options
A trader can trade in many ways in the Nifty market. They can trade in nifty cash, nifty future and nifty options. The trading in all types of equity trading can be done in form of Nifty Cash and Nifty options. In the cash market the trader or the investor invests in the stocks by paying the current market prices in the market. In futures a contract is signed between the seller and buyer for a future date. Thus the market price of buying the particular entity on a future date is decided. In case of options a put or a call option is initiated. The call is similar to buy the option and put is similar to sell the option. If the call is initiated and the market goes up the trader will incur a profit. On the other hand if the call is initiated and market goes down the trader will incur a loss.

Trading in Nifty futures can be done by having the idea of the trend in the morning before the start of the market. The opening session of the nifty closely follows the SGX Nifty. The SGX nifty is the nifty traded in the Singapore exchange. Thus if the SGX nifty in the morning session has seen a strict uptrend the same will be seen in Nifty and if a strong down trend is seen in the SGX nifty the same will be observed in the Indian market also. In case there is no strong movement in any direction the trader should take the other factors in account to decide the market trend on that particular day. Thus the market movement in the early morning session decides the initial opening of the Nifty in the Indian Market. The other factors besides the SGX nifty following are the Indian rupees and Dollar exchange rate and any news of political importance.

In case the trader is new to the market, they can take the help of any reputed advisory firms for the analysis of technical related to Nifty and SGX Nifty and provide adequate calls on the Nifty in the Indian Market. Money Classic Research is one such reputed advisory firm to provide support and help related to financial issues and investments. The advisory firms have expert technical analysts who on the basis of their detailed technical analysis provide accurate stock market tips. One can take their demo service and once satisfied with the service they can take the paid services.

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