Day Trading Futures

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LivetoTrade

Well-Known Member
as border bhai adviced i tried to trade in options based on nifty spot. but lack of knowledge in that got minor loss.
the problem is mainly on premium. options always linked with futures. while reflecting their value with futures. but not with spot.

i noticed that the difference between spot & futures in nifty was 5 to 12 points change today. if i have a trade with 5 points difference, turned to 10 points the change was reflecting in options.

how can we handle options with spot that what linked with futures. pls any one light on this.
I have mentioned somewhere earlier too, Options and Futures are "Derivatives" - they are derived from the "Spot" price.

They are settled as per spot price.

The move and calculation is always based on spot price only.
 

bapu4

Well-Known Member
playing using market depth is suicide. i have borne the pain so many times and now i never use it. those sellers and bidders will be gone in an instant.
now i just keep looking at charts .:D
SS bro
I fully agree with you,but in the books of TA they explain it with this order book and no author tells what all of us have already experienced!!No matter if they don't mention but the matter is we then learnt it hard way!!
:D:D
 
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manishchan

Well-Known Member
playing using market depth is suicide. i have borne the pain so many times and now i never use it. those sellers and bidders will be gone in an instant.
now i just keep looking at charts .:D
SS bro
I fully agree with you,but in the books of TA they explain it with this order book and no author tells what all of us have already experienced!!No matter if they don't mention but the matter is we then learnt it hard way!!
:D:D
I read somewhere that they also creat false view of bid vs ask. Like place order with big vol to reflect but then cancel then at last second etc..
 
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