re: Day trading Nifty & Banknifty Futures
A 25 sigma event is an rare event where the price move a lot. Sigma here refers to standard deviation. Ex, In Oct 87, Dow Jones fell 22.6% in one day.
To know a 25 sigma event approximately, draw a Bollinger band with SD as 25 and you will know.
Maximum exposure refers to the maximum loss theoretically possible. For stocks it is 100%, for short F&O it is infinite and for long futures it is the notional value.
in red.....
To know a 25 sigma event approximately, draw a Bollinger band with SD as 25 and you will know.
Maximum exposure refers to the maximum loss theoretically possible. For stocks it is 100%, for short F&O it is infinite and for long futures it is the notional value.