Trade Nifty Futures and BankNifty Options

Vtrender offers a dedicated chatroom for all active traders, with 4 charts of current month Order
flow Futures, 2 expanded charts of the NF and the BNF running our proprietary OrderFlow
software which detects big players and institutions as well as Smart money hunting at Market
Tops and Bottoms. Plus access to Real Time Market Profile charts and 24 x6 Slack access and
history of previous sessions including chat at our private blog.

You also get access to the Training Library which has our Trading Setups theoretically
explained + VIP access to all our live webinars during your subscription period. You have
access to Market Profile Real time charts and an active Market Profile community on Slack. The
Live webinars would be on trades taken in the room with trading setups explained from the
Trading Library via examples.

Technical analysis is done Live in the room as the stock-market moves. We discuss the basics
of price action trading and volume profile trading for all participants from starters/ freshers to
experienced. The Trading Room is the best real time resource to see actual execution of Market
Profile and Orderflow concepts Live during Market Hours .

How Nifty Plays a Complete Role in Trading

Are you having any kind of problem on investing your money in NIFTY then i am here to solve
your problems related to the topic of share market in this blog we are going to study in a brief
about Nifty and how bank nifty option plays an important role in trading, first of all we all will
study about Nifty and what is bank nifty option.

What is Nifty?

Basically we all call it nifty but it's actually known as the NIFTY 50 which was launched on 1st
April 1996 and it is owned and managed by India Index Services and Products (IISL).
The NIFTY 50 covers a total of 12 sectors of the Indian economy. During 2008-12, NIFTY 50
Index share of NSE market capitalization fell from 65% to 29% because of the rise of sectoral
indices as NIFTY Bank, NIFTY IT, NIFTY Pharma, NIFTY Next 50, etc. The NIFTY 50 Index
gives 29.70% of its shares to financial services, 0.73% weightage to industrial manufacturing
and 0% weightage to agricultural sector.

The NIFTY 50 index is a free float market capitalization weighted index. The index initially was
calculated on full market capitalization method. From June 26, 2009, the computation has been
changed to free float methodology. The base period for the CNX Nifty index is November 3,
1995, which completed one year of operations of National Stock Exchange Equity Market
Segment. The base value of the index has been set at 1000 and a base capital of Rs 2.06
trillion.

These are some of the things we need to know about NIFTY before entering into the field of
share market.

Now I am going to tell you how bank nifty option in trading plays an important role in the stock
market.

Nifty:

NIFTY is the stock index that was introduced by the NSE. Nifty futures consists of fifty stocks
that area unit actively listed. Next, these stocks are from 12 different sectors of the economy.
The contracts of neat rank among the foremost listed within the world. India Index Services and
Products Ltd. (IISL), that could be a subsidiary of NSE Strategic Investment Corporation
restricted, manages and owns bank Nifty Option. The neat fifty is another necessary term that
has to be understood before mercantilism within the stock markets. Therefore, allow us to take a
glance at it and also the connected terms.

Sensex:

SENSEX is also a stock index that was introduced by the BSE. SENSEX consists of 30 stocks
that are actively traded. Furthermore, these stocks belong to different sectors of the economy.
Intraday:

It involves in daily market. The buying and selling of shares on the same day refers to intraday.
The traders hold its shares for few minutes to some hours, upto market closes. If the trader buy
or sells any shares in intraday and do nothing with that upto market off time then it automatically
square off with market closing.

Holding:

It involves with weekly or monthly market. The buying, selling of the shares may take 2-3 days
to a few months to a year. In this case investment is for long period.

These were some basics you should know while entering into the market. Besides these, Stop
loss, scalping and some other terms should be known to you.

Stop Loss:

It is used in trading to stop your loss by auto squaring off your shares while reach that target.

While target, is also a term used to make profit by auto squaring off when it reaches to it target.

Both stop loss and target have similar work with different purpose.

Auction Market Procedure:

The process involved in an auction market differs from the process in an over-the-counter
(OTC) market. On the NYSE, for example, there are no direct negotiations between individual
buyers and sellers, while negotiations occur in OTC trades. Most ancient auctions involve
multiple potential consumers or bidders, but only a single seller, whereas auction markets for
securities have multiple buyers and multiple sellers, all looking to make deals simultaneously.

Strategies of auction market theory:

Auction market is the place where buyers and sellers enter competitive bids simultaneously.
The price at which a stock trades represents the highest price that a buyer is willing to pay and
the lowest price that a seller is willing to accept. A double auction market is when a buyer’s price
and a seller’s asking price get match, and the trade proceeds at that price. Auction markets do
not involve direct negotiations between individual buyers and sellers, while negotiations occur
for OTC trades. The U.S. Treasury holds auctions, which are open to the public and large
investment entities, to finance certain government financial activities.

Order flow:

The term order flow comes from market manufacturers and specialists receiving giant orders to
figure. The better worth they got for the order, the more order flow they got. The a lot of order
flow, the a lot of they created in commissions.

Market profile:

Market Profile Open Type and Confidence:

Reading the profile right from the day open offers a lot of confidence to on a daily basis monger
towards trade conviction. The confidence level of the opposite timeframe monger (Long Term or
point trader) will be analyzed through market gap.

Market Profile – Spike and Spike Rules:

By perceptive Spike action in market and therefore the next days follow through with action one
will confirm whether or not the previous days spike action is fake move to confuse the traders or
it's reaching to produce a property trend towards the spike direction.

Market Profile – Failed Auction:

Failed Auction is a Market Profile Pattern brought to the world by Ray Barros of Trading
Success. Failed Auction provides monger an excellent chance to trade with dynamic outlook
and constructing his/her commerce rules consequently.

Nifty futures:
Bank Nifty Futures is the stock index that was introduced by the NSE. NIFTY consists of fifty
stocks that area unit actively listed. Furthermore, these stocks belong to twelve completely
different sectors of the economy. The contracts of slap-up rank among the foremost listed within
the world. India Index Services and Products Ltd. (IISL), that may be a subsidiary of NSE
Strategic Investment Corporation restricted, manages and owns Nifty. The slap-up fifty is
another vital term that has to be understood before commerce within the stock markets.
Therefore, allow us to take a glance at it and therefore the connected terms.

The organization takes the responsibility to authorise all the chance of holding shares of the
general public. The organization analysis fine concerning the corporate and initial public
providing of the shares to the general public .

If they notice something wrong in their commercialism then they reject that company for listing in
the market.

How trading in bank NIFTY option makes sense?

As we all know that the Nifty 50 Index is a basket of 50 stocks. These stocks are selected to
represent a wide section of the India economic sectors. This makes Nifty a good representative
of the bigger economic activity in all over India. This naturally means if the general economic
activity is going up or at least expected to go up then Nifty’s value will also goes up, and vice
versa. This also makes trading in bank Nifty Futures a much better choice as compared to any
single stock futures.

This is all about the NIFTY and how does bank NIFTY option in trading plays an important role
in the field of stock market.

Thank you!

Email address: support@vtrender.com

Contact number:9511921975