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.