NSE has thousands of shares and it is difficult to keep track of them all. Stock movement is cyclical, news driven, or bound to limit for a long time. Strategy to Trade in Nifty Future and Nifty Option. As an expert, not only will you have to correctly identify the sector that you should be able to choose the right stock.
Nifty is an index that is calculated from the performance of the top stocks of various sectors listed on the National Stock Exchange (NSE).
It is a group of 50 companies and the National Stock Exchange is an abbreviation for fifty. Companies that make an index of the Nifty may vary from time to time depending on many factors that have been implemented by the NSE. The Nifty will always rise above if the market performs well and goes down, then the market is on low.
Nifty is an index that is calculated from the performance of the top stocks of various sectors listed on the National Stock Exchange (NSE).
It is a group of 50 companies and the National Stock Exchange is an abbreviation for fifty. Companies that make an index of the Nifty may vary from time to time depending on many factors that have been implemented by the NSE. The Nifty will always rise above if the market performs well and goes down, then the market is on low.
Why Trade in Nifty Future?
1. Liquidity - In the derivative market, the Nifty option and future are one of the most liquid contracts. And it is very difficult to manipulate a liquid contract. Therefore, it is safe to do business in future Nifty.
2. You can do business on both sides - By trading in Nifty options and in future also you can earn both ways, no matter what the market is moving forward.
3. Low Brokerage - Most Brokers Offer Low Brokerage on Nifty Future and Nifty Options in Stock Future and Options, However, it varies from institutions to institutions.
4. Low volatility - Due to news, rumors and other factors, individual stocks can show wild swings. However, the Nifty is a representative of only 50 shares, no wild movement in a stock does not produce wild movement in the Nifty.
After negotiating negotiations and prices between buyers and sellers, option prices are determined. The price of the option is mainly influenced by the relationship between the price and the price of the prices and the cost of the means of future prices of buyers and sellers.
There are some factors which influence the price of an option.
1. The underlying stock price
2. The strike price of the option
3. Unless the option ends, the remaining time
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