General Trading Chat

amitrandive

Well-Known Member
Good question. That's why we have to eliminate maximum risk from our overnight derivative trades.

I have innovated my own trading style to eliminate maximum overnight risk carrying nifty future following way:-

Before entering for an overnight derivative trade with open position, I ensure 1st the max loss that can happen. I trade my swing trade with Nifty Future(also with option during strong trend) INTRADAY as a day trader then square off. When I require to continue OVERNIGHT SWING, I buy option(instead of nifty future, I use option CE/PE with 10-20% of capital) few minutes before market closing. By doing that my maximum risk is limited to only max 10-20% of capital which I used to buy options.
I mostly use overnight positions few min before market closing using option during start of a strong trend or in anticipation of gapup/gapdown. I have invented that useful strategy as a bonus income for a day trader with limited risk. :D

Hope this idea help to some trader friends also. :)

Best Wishes & Happy Trading.

H.C.
JMD

Just have a doubt.How do you hedge your positions around expiry when the option values go on decreasing?
 

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