Why and How to Trade in NIFTY Futures

Hello friends, are you having any kind of problem about 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 Futures and why and how to trade in Nifty Futures. Let's start our topic by knowing in a brief about Nifty Futures.

About Nifty futures

It is basically some index futures where the underlying is the S&P CNX Nifty index. In a country like India, index futures trading started in 2000 on the National Stock Exchange.

Nifty futures has contracts of 50 stocks, Nifty futures contracts have a three-month trading cycle also and those are , the near month, the next month and the far month.

When the near month contract expired, a new contract of a three month duration is introduced on the next trading day. Investors can easily trade in Nifty futures by having a minimum amount in their account. The minimum amount should be a percentage of the contract value.

Why we should trade in Nifty Futures?

Here are some of the main things that i am going to tell about which gives advantages in trading in Nifty Futures.

Short stock, long index futures

Sometimes when you sell your stock, but the market is upside at that time, thus in result you have to face lost potential profits. Index futures help you to reduce this risk. By buying index futures when you are lack of the stock, you can reduce the amount to minimum of potential profits lost.

Equity portfolio, short index futures.

Few times when you own a portfolio and feeling uncomfortable about the condition of market. You can decrease the risk by selling index futures. The concept based on the fact that each portfolio has their index exposure and so risks are accounted for by unstable in the index.

Long Stock, Short Index Futures

Suppose you have 500 shares of Reliance Industries at the price of Rs 1,000 per share, Nifty is at 5,000 and Nifty futures is at 5,020.

To save your Rs 5 lakh (Rs 5,00,000) position from the market downturn, you will have to sell your 100 Nifty futures. Suppose on the date of expiry, the Nifty Futures is at 4,750 (fall of 5 percent). When both the position will close, you will earn Rs 2,000.

Short Stock, Long Index Futures

Suppose you are facing the lack of 400 shares of Infosys Technologies at a price of Rs 2,500 for each share, Nifty is at 5,000 and Nifty futures is at 5,050.

To save your money Rs 10 lakh (Rs 1 million) position from the downturn of market, you will have to buy about 200 Nifty futures. If, on the date expiry, Nifty futures is at 5,250 (Rise of 5 percent), When both the position will close you don't have to face any kind of loss.

These are some of the basic and necessary things you should know about Nifty and Nifty futures if you are newly entering into the market.

I hope, my above mentioned things will help you a lot to understand about Nifty and Nifty futures.

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 in trading plays an important role in trading, first of all we all will study about Nifty and what is bank nifty option in trading.

What is Nifty?

Basically we all call it nifty but it's actually known as the NIFTY 50 which was launched in 1st April 1996 and it is owned and managed by India Index Services and Products (IISL).

The NIFTY 50 covers 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 sectorial 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 must need to know about NIFTY before entering into the field of share market.

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

How trading in bank NIFTY option makes a 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.

I hope friends i could you help you in that you as u wanted and solved all your problems about the stock market by telling in brief about this, beside this if you wants to know anything about share market or NIFTY then friends please go to the comment section and drop a comment about what you want to know, i am waiting for your comments.

ORDER FLOW OF MARKET

Are you new in market? If yes, then some terms of market can harass you. To know better about market and trading, you need to understand all the terms very clearly. Order flow is one of the most important term to know in trading. If you want to learn basic about market and shares then you can stay with us up to last. Order flow in trading is a basic thing that should know all. And in this article not only we cover the order flow but also some relevant terms that is important for you to know.

So what is order flow?

The term is generated by market makers where this strategy is used by them to make commission and specialists receiving large orders to work. The better worth they got for the order, the more order flow they got. A lots of order flow, the a lot of they created in commissions.

Some relevant terms of order flow that you should know are:

Auction market theory: - Auction may be a term utilized in share exchange wherever consumer’s bids worth and therefore those that will bid the very best worth he's eligible to shop for that share.

NIFTY: - NIFTY is the stock index that was introduced by the NSE. NIFTY 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 Nifty. 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, up to market closes. If the trader buy or sells any shares in intraday and do nothing with that up to 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 few months to year. In this case investment is for long period.

These were some basics you should know while entering into 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 to 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. I wish above mentioned all the terms related to market were helpful for you. Keep searching and keep learning about the market because it's a very vast place.

Hope I fulfilled your search of order flow. If yet have any doubt then don't forget to write us on the comment below.

What is market profile trading?

Auction :

The bid-ask method of the market is delineated  as Associate in Nursing Auction Market Theory. the aim of Associate in Nursing auction is to facilitate trade. The auction ends up in the formation of the worth space that the patrons and also the sellers agree because the fairest value for the day. because the auction moves off from the worth space, patrons and sellers amendment their definition of import. If higher costs ar united within the auction, worth is meant to maneuver higher and consequently the market moves up. The market can auction as high because it must so as to search out sellers or as low because it must so as to encourage patrons to examine it as “relatively cheap”.

What is market profile trading?

Market Profile commercialism is best called a chart-based commercialism strategy. A Market Profile is associate intra-day charting technique (price vertical, time/activity horizontal) devised by J. Peter Steidlmayer, a merchant at the Chicago Board of Trade (CBOT), ca 1959-1985. Steidlmayer was seeking to gauge value because it developed within the daily timeframe. Steidlmayer's charts displayed a curved shape, fatter at the center costs, with activity trailing off at the upper and lower costs. during this structure, he recognized the 'Normal', normal distribution he had met with in school statistics.

This tutored American state actual techniques instead of the same old useless theory.

The market profile has become a hot topic once more. several traders are to seek out|searching for} data on a way to use market condition profiles to find smart trades.

Market Profile is best understood as some way to check the order within the markets.

While not a typical “indicator.” Market Profile takes the information from every day’s commercialism session and organizes it to assist U.S. to perceive UN agency is up to the mark of the market and what's perceived as truthful worth.

Market profile is a lot of almost like the Market Internals (market breadth and advance/decline line) than a moving average or random indicator.

How it Works

Each day the market can develop a spread for the day at the side of a worth space. This worth space represents associate equilibrium purpose between patrons and sellers. The “profile” follows a standard distribution curve.

Volume is the key ingredient to understanding Market profile. If costs move aloof from their equilibrium (value area) and volume starts to dry up, it's probably that costs can withdraw into worth.

If worth moves aloof from equilibrium on sturdy volume, this can be an indication that traders are reevaluating the present worth space as there has been a shift in sentiment.

Market Profile isn't a commercialism system however a market generated data and a choice ancillary system at the side of your existing commercialism systems. It provides you information concerning UN agency is up to the mark within the market (Long Term Players, Short Term Players, Day Traders), directional conviction. Market profile trading strategies offers a plan to on a daily basis merchant concerning wherever to require trade and that trend to play for the day supported trend conviction.

Market Profile study is totally different from ancient technical analysis indicators. you would like to unlearn several you are thus known as ancient technical analysis learnings before diving deeper into it. like all alternative technical analysis studies, Market Profile consumes several time in learning. It needs at least a live observation for three months and parallel reading is required to grasp what alternative market players are attempting to try and do and the way the professional traders and institutional players are driving the market. As somebody's merchant, it usually happens that we tend to check what we would like to check and react supported restricted data. Market Profile solves this sensory activity visual disorder to some extent.

If you're at the start of your Order Flow mercantilism Strategy maturity journey and looking out for additional data, you must begin with the educational program, inspect our educational program.

Here: https://vtrender.com/trading-room/

Order Flow Trading Strategies for beginners

If you are analysis this article then definitely you are a trader or wish to learn to trade. Now in this article, I have discussed order flow trading strategies, how to check market profile before entering into trading? And some basics or fundamentals of trading you need to know.

So stay attach up to last to get all details.

In comparison to other trading disciplines, Order Flow trading strategies do not hold that many trading strategies you can use. The reason why is because there is no suitable order book available which you can use to see when to buy and sell orders are entering the market in real time. The strategies I’ve picked for this evaluation aren’t full order flow trading systems, so you don’t have to fret about changing your current trading strategy in order to trade them, you can just use them as additional setups to watch out for when your Market Profile.

Let’s move to define core strategies.

When you have a proposal about what you want to use as a core strategy Auction Market Theory, ask yourself:

• What is the idea behind the strategy?
• What are the strategy’s strengths and weaknesses?
• What factors are giving my strategy an edging?

I’m using the stop stalk strategy myself, so I’ll answer the questions in the way I perceive it:

What is the idea behind the strategy?

Large traders cannot merely accumulate or distribute positions whenever they wish to do so because they would suffer from slippage. Slippage can have a great shock on your P/L if you are one of the big players in the market.

What are the strategy’s strengths and weaknesses?

• Strengths: Enterprise of large traders behind it, clear sentiment gives us the support of other participants, clear profit target.
• Weaknesses: Entrance point can be somewhat hard to determine, another reason why we should focus on strong sentiment so that we have the support of “the flow”.

What factors are giving my strategy an edge?

I only trade when sentiment is clear. I come across for the market to trigger buy stops during positive sentiment and when sentiment is negative, I target sell stops. If sentiment is positive and price action starts to move accordingly, other participants will start to join the movement.

There we have great we can already work with. As has been mentioned, the markets are all about the greed of fear. Even professionals with long and successful track verification will sometimes find themselves in one of those states. It is not preordained for us humans to be like robots, not yet in trading. In combination with emotion analysis, try to incorporate some psychology. Regarding those without a position yet, it is all about awareness. Where will key demand and supply be located? And then are those with a position on, what’s their target? Do they have sentiment in their favor? Which side of the market is the weaker one? Where are the stops of the weaker side? Some questions you can ask yourself and note in your journal. While those questions are not easy to answer sometimes, it is about keeping it simple by observing and taking notes. Your involuntary mind is capable of amazing things and you have nothing to lose by trying it.

Some common basic concepts to make capital through trading are:-

1. Scalping:- Scalping (or micro-trading) is all about taking very small profits, repeatedly. Typically, trades last from seconds to minutes. Scalping is a trading strategy that attempts to make any profits on diminutive price changes.
2. Day trading:- Day trading is all about buying and selling on the same day, without holding positions overnight. Compared to scalping, this approach calls for holding positions for minutes to hours versus seconds to minutes.
3. Momentum trading:- In momentum trading, the trader identifies a stock that is “breaking out” and jumps on to capture as much of the momentum on the way up or down as possible.
4. Swing trading:- Swing trading is the art of capturing the short-term trend. It is a way of trading that attempts to capture gains in a stock within one to seven days.
5. Position trading:- Position traders stay in trades for weeks to months. The position trader endeavors to foresee whether the current trend will continue for a much longer term than a momentum or swing trade. Position trading gives traders who cannot trade habitually a lot of freedom.

Your best put money on is to focus on key supply/demand zones on higher time frames that will likely attract the flow necessary to ignite momentum.

If you are at the beginning of your Order Flow Trading Strategy maturity journey and looking for more information, you should start with the training program, Check out our training program. https://vtrender.com/trading-room/

Best Order Flow Trading Strategies for beginners

In comparison to other trading disciplines, Order Flow trading strategies does not contain that many trading strategies you can use. The explanation why, is because there is no proper order book available which you can use to see when buy and sell orders are entering the market in real time. The strategies I’ve picked for this critique aren’t full order flow trading systems, so you don’t have to worry about changing your current trading strategy in order to trade them, you can just use them as additional setups to watch out for when your Market Profile.

Let’s move to defining core strategies.

When you have an idea what you want to use as core strategy Auction Market Theory, ask yourself:

• What is the idea behind the strategy?
• What are the strategy’s strengths and weaknesses?
• What factors are giving my strategy an periphery?

I’m using the stop hunt tactic myself, so I’ll answer the questions in the way I perceive it:

What is the idea behind the strategy?

Large traders cannot simply accrue or distribute positions whenever they wish to do so, because they would suffer from slippage. Slippage can have a great blow on your P/L if you are one of the big players in the market.

What are the strategy’s strengths and weaknesses?

Strengths: Scheme of large traders behind it, clear sentiment gives us the support of other participants, clear profit target.

Weaknesses: Entry point can be somewhat hard to resolve, another reason why we should focus on strong sentiment, so that we have the support of “the flow”.

What factors are giving my strategy an edge?

I only trade when sentiment is clear. I look for the market to cause buy stops during positive sentiment and when sentiment is negative, I target sell stops. If response is positive and price action starts to move accordingly, other participants will start to join the move.

There we have something we can before now work with. As has been mentioned, the markets are all about greed of fear. Even professionals with a long and triumphant track record will sometimes find themselves in one of those states. It is not preordained for us humans to be like robots, not even in trading. In combination with sentiment examination, try to incorporate some psychology. Regarding those without a position so far, it is all about perception. Where will key demand and supply be located? And then are those with a position on, what’s their target? Do they have sentiment in their favor? Which side of the market is the weaker solitary? Where are the stops of the weaker side? Some questions you can ask yourself and note in your journal. While those questions are not easy to answer sometimes, it is about keeping it simple by observing and taking notes. Your intuitive mind is capable of amazing things and you have nothing to lose by trying it.

Your best bet is to focus on key supply/demand zones on higher time frames that will likely be a magnet for the flow necessary to ignite momentum.

If you are at the beginning of your Order Flow Trading Strategy development journey and looking for more information, you should start with the training program, Check out our training course. https://vtrender.com/trading-room/

Trade using market profile trading strategies

Intelligence Strategic Market Profiles provide a consistent approach to the analysis and forecasting of the automotive industry for specific markets and regions worldwide.

Covering market size, parc size, ownership levels, and vehicle scrap rates, plus many further ratios and variables reflecting the past, current and future state of the market, these comprehensive profiles provide a unique insight into the structure and future developments of the world's automotive marketplaces.

Each profile covers the 60-year period from 1960 to 2020 and provides data on passenger cars, commercial vehicles, and total vehicles, complete with written analysis, data and charts encompassing the entire time span, enabling easy access to the data - and what it means to you - on a multitude of levels.

Each profile contains over 60 tables and graphs, and 15,000 words of analysis. All numerical data is also available in MS Excel format from a dedicated downloads section, for easy further manipulation and integration into your own reports and forecasts.

Although India has been much discussed in recent years and has been the heir of major foreign investment in its automotive industry, it has in many ways not received the attention of the world’s other most important developing country, China – but this is about to change.

With the world’s second largest and fastest-rising population, there is no denying India’s probably in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to an excellent start, with a well-developed components industry and a production level of one million four-wheeled vehicles a year, plus a further five million two- and three-wheelers. India also has considerable strength in mass production techniques and is particularly well served in the fields of research and development and software design. Therefore, as always, the question is when will extension occur and to what level?

The implication, market drivers and scope of a future immense Indian vehicle market are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and related activity to 2020. Based on Max Pemberton's exclusive relational long-term forecasting model, it forecasts car and CV sales, demographics, materials usage, auto industry employment, and explains their inter-relation with detailed analysis.

Now finally after knowing the complete detail, you should read carefully below tips to trade using market profile trading strategies, to earn a profit and to be aware of losses. And time to time you have to gain knowledge from your own experience to be an expert trader.

• Auction market theory:- Auction is a term used in share exchange where buyer bids price and the people who can bid the highest price he is eligible to buy that share. You have to learn extremely about the auction market and the strategies to make up revenue and you have always to be updated.
• Order flow:- The phrase order flow comes from market makers and specialists receiving large orders to work. The better value they got for the order, the more order flow they got. The more order flow, the added they made in commissions.
• NIFTY Features:- NIFTY is the stock index that was introduced by the NSE. NIFTY consists of 50 stocks that are vigorously traded. Furthermore, these stocks belong to 12 different sectors of the financial system. The contracts of Nifty rank amongst the most traded in the world. India Index Services and Products Ltd. (IISL), which is an ancillary of NSE Strategic Investment Corporation Limited, manages and owns Nifty. Nifty 50 is another important phrase that needs to be understood before trading in the stock markets. Therefore, let us take a look at it and the related terms.

What is Market Profile?

Keep searching and keep experiment about the market more and more to gain more knowledge. I hope this article was helpful to you.

Profit from Order Flow trading strategies?

If you are reading this article then definitely you are a trader or wish to learn trading. Today in this article i have discussed about order flow trading strategies, how to check market profile before entering into trading? And some basics of trading you need to know.

So stay attach upto last to get the all details.

At first the most common question may arise at your mind that what is order flow in trading?

So, Order flow :- Order flow trading has a very wide definition and it is not necessarily exclusive to other methods of trading. The cornerstone of order flow trading is anticipating the prices where other traders have pending orders set, particularly important market participants with very large orders.

Order flow trading strategies :-

1. Think About What Other Market Participants Might Do :-
   This is a very important concept in order flow trading-thinking about what order market participants might do.
   And when you think along that line, you can anticipate what kind of actions they will be taking in the market.
   You see the forces of fear and greed play out in the market everyday.
   But like anything else in life, once you continue to study it, learn it and over time, it starts to become easier and you can start to view the forex market with a completely different eyes and you’ll start to:
   be aware aware how price is moving
   in which manner it moves (not as good as bank flow info, but price action gives some good insights)
   your knowledge about other participants helps you avoid common mistakes
   and finally, your knowledge about market inefficiencies will help you combine all this and exploit those opportunities in live trading.
   

            

2. What Are The Steps To Learn deeply Order Flow Trading :-
   There are 3 basic steps to learn about order flow trading and here they are:
   
   Step 1: Learn about market microstructure (how price change, type of orders, liquidity etc.)
   
   Step 2: Learn about the other market participants (commercials, banks/dealers, real money, sovereigns, large speculators)
   
   Step 3: Exploit market inefficiencies.

Market profile :-

Market Profile is not a trading system but a market generated information and a decision support system along within your existing trading systems. It provides you knowledge about who is in control in the market (Long Term Players, Short Term Players, Day Traders), directional conviction. Market Profile gives an idea to a day trader about where to take a trade and which trend to play for the day based on trend conviction.

Market Profile Open Type and Confidence

Reading the profile right from the market day open gives more confidence to a day trader towards trade conviction. The confidence level of the Other timeframe trader (Long Term or Positional trader) can be analysed through market opening.

Market Profile – Spike and Spike Rules

By observing Spike action in market and the next days follow through price action one can determine whether the previous days spike action is false move to confuse the traders or it is going to create a sustainable 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 trader a great opportunity to trade with dynamic mindset and constructing his/her trading rules accordingly.

Poor High and Poor Low Market Profile Structure Explained

Poor low and Poor High are market profile structure which generally indicates a market that is too long or too short and the shorter timeframe players in the market has low confidence about the current market direction.

Some common basic concepts to make money through trading are :-

1. Scalping :- Scalping (or micro-trading) is all about taking very small profits, repeatedly. Typically, trades last from seconds to minutes. Scalping is a trading strategy that attempts to make many profits on small price changes.
2. Day trading :- Day trading is all about buying and selling on the same day, without holding positions overnight. Compared to scalping, this style calls for holding positions for minutes to hours versus seconds to minutes.
3. Momentum trading :- In momentum trading, the trader identifies a stock that is “breaking out” and jumps on to capture as much of the momentum on the way up or down as possible.
4. Swing trading :- Swing trading is the art of capturing the short-term trend. It is a style of trading that attempts to capture gains in a stock within one to seven days.
5. Position trading :- Position traders stay in trades for weeks to months. The position trader endeavours to anticipate whether the current trend will continue for a much longer term than a momentum or swing trade. Position trading gives traders who cannot trade frequently a lot of freedom.

If you are know more about market profile strategies and more about vtrender please visit : https://vtrender.com/