nac Calling JOBBERS/SCALPERS

[iamaaditya]

Presently I am exploring short term trades in Options (NSE), if anyone scalped (or Intraday/Swing Trades) in Options (spreads and strategies) please share your experience.

hi Aditya

I have tried scalping options taking the underlying (nifty) as cue and hedge, but the results were very mediocre. maybe the reason behind this was that oftentimes I found options leading (and underlying lagging) wheras at other times, reverse was the case.to give u a recent example, today itself,nifty 6000 call fell by 5Rs.(with nifty at the same price), just before the mkt. broke down.
regarding ur query about trading option spreads,after doing a lot of trading in options, I used to consider myself quite an okay options trader, but after reading a few posts by Dan , and doing a little research on the subject, I realised that I am purely a futures trader who is using options as a hedge. the only advantage that I had was that having a little knowledge of greeks & synthetics, I could come out of situations where deep in the money stock options become illiquid. But pure options trading is a different ball game altogether. It is a very vast field in itself requiring a lot of understanding....maybe someday......

regards

Thanks for the info, somehow I feel scalping options hasn't been exploited in our indian markets. (also the brokerage/taxes in options may be deterrent).

The reason the options (and also futures) move more vigorously (ie always either lagging or leading) is because of anticipation of the traders (everybody wants to be ahead, so a small que towards bull, everyone buys (classic crowd behavior) and vice-versa), but if you see in the mature markets like dow and nikkei, it is quite the opposite, i.e futures stay at some points (because they are resilient towards every small move that underlying (esp: index) makes, and when the move seems immenent the future jumps ahead and stays calmly for the underlying to reach there.

well, presently finding calculations on volatility and other pricing models (i don't know why a lot of options trader feel black-scholes formula do not incorporate the skewed distribution which is seen in stock market (and not normal distribution)) difficult to digest..

 

[anuragmunjal]

@anurajmunjal sir

First of all thank you very much for helping to find out the software.I am waiting either for software or its name
Thanks

dear friend

I tried to upload the software on my gmail id 2 day, but it gives an error.........'something on the lines of this being an exectuable software or whatever...gmail does not allow to upload this.' do pm me ur email id.. other than gmail.... and I'll try n mail it to u 2morrow.

regards

 

[ranger123]

hello everyone.

sorry for being away for so long, was fully into Forex and it is a universe in its own. Though never scalped in NSE/BSE, I found short term trades (Since calling a 3-4 Min Trade as Scalping/Jobbing would result in a new chain of replies stating the definitions of scalping) in Forex quite profitable (& sustainable).
[Mostly i traded, 3 Min Candle, went Long when Currency Pair hit bottom of BB in 2nd or 3rd wave of movement, scalped for 5-10 pips. If anyone interested in Forex try this strategy in demo, after some practice I am sure win ratio will improve a lot]

Well Nac, since the Thread is yours alteast I need to mention your name once. Howz it going ? I am sure you must have learnt a lot of new things and some things you wish you knew then. (if you share such ideas may be lot of newcomers will benefit, though the chance that they will heed the advice is low, may be somebody will save some of his/her cash)

Presently I am exploring short term trades in Options (NSE), if anyone scalped (or Intraday/Swing Trades) in Options (spreads and strategies) please share your experience.

Aaditya sir, it is good to see your postings after along time. I want to ask you why you start forex trading just for scapling is benefiting in forex. I think india stock market is very large for many traders to make a leaving from it so one can concentarate here only and become master here only. Atleast this market close at 3;30 and you can go home and spend time will family and freinds

I know now that forex is becoming a hot demand because of liverage and 24 hour trading, but both thing si not good as we earn more and loose more and also we are not enjoyeng personal life also.

Thank you and best of luck.

 

[kuthapi]

@aaditya sir,
thanks for useful advice what you said is 100% right but my aim is to type faster order and
excucate it

@anuragmunjal sir,
I have pm my e-mail id to u

Thanks

 

[iamaaditya]

Aaditya sir, it is good to see your postings after along time. I want to ask you why you start forex trading just for scapling is benefiting in forex. I think india stock market is very large for many traders to make a leaving from it so one can concentarate here only and become master here only. Atleast this market close at 3;30 and you can go home and spend time will family and freinds

I know now that forex is becoming a hot demand because of liverage and 24 hour trading, but both thing si not good as we earn more and loose more and also we are not enjoyeng personal life also.

Thank you and best of luck.

Well the reason for moving unto Forex was more due to changes in my office timing, thus giving me evening (and night) to trade and only forex was available (for intraday trading in US market your account should have atleast $25,000). And once into forex, I feel more potentials here (since my broker also allows trading into Crude Oil, Gold, Silver) and exotic currency pairs.

Regarding Leverage, a lot of people have a great misconception. Using Leverage is an edge (and can be mis-used as double edge sword, so leverage is only for people who understand its pros & cons) (Without high leverage it is very difficult to be able to afford Gold/Oil Contracts).

@Anurag,

If you can atleast name the software for the good of the general public, I am sure people will be able to get their own copy (if they feel the necessity).

 

[anuragmunjal]

hi Aditya

I have already got the software mailed to kuthapi and ranger, if anyone else needs it, can pm either of them as I do not have a copy in my mail.

regards

 

[nac]

^

Aadi,

I am just askin' you this since you have mentioned about trading in US market (Account worth 25grand)... I have heard about leverage in forex (like 1:100 - 1:1000). But how about leverage in trading US stocks. I don't have any clue in that. How much leverage one could get in trading US stocks/options/futures...

I have heard (I am not sure which one fxcm or GCI) allows to trade US stocks. And the margin (I think this is the term they use) requirement is very low (lower than our market - leverage of 6 times). If I remember correctly just $7 is enough to trade (again I don't know whether its 1 lot or 1 share) of FCX. This was two years ago... I don't even know what's the current market price of FCX.

This is the query... How much leverage would a trader get to trade US stocks and other instruments?

Edit: You are not trading in US market. But you might have known, I guess...

 

[iamaaditya]

^

Aadi,

I am just askin' you this since you have mentioned about trading in US market (Account worth 25grand)... I have heard about leverage in forex (like 1:100 - 1:1000). But how about leverage in trading US stocks. I don't have any clue in that. How much leverage one could get in trading US stocks/options/futures...

I have heard (I am not sure which one fxcm or GCI) allows to trade US stocks. And the margin (I think this is the term they use) requirement is very low (lower than our market - leverage of 6 times). If I remember correctly just $7 is enough to trade (again I don't know whether its 1 lot or 1 share) of FCX. This was two years ago... I don't even know what's the current market price of FCX.

This is the query... How much leverage would a trader get to trade US stocks and other instruments?

Edit: You are not trading in US market. But you might have known, I guess...

Regarding Leverage in US markets, rather than I explain here are the words of SEC (equivalent to SEBI) ---

Summary of the Day-Trading Margin Requirements



The rules adopt a new term "pattern day trader," which includes any margin customer that day trades (buys then sells or sells short then buys the same security on the same day) four or more times in five business days, provided the number of day trades are more than six percent of the customer's total trading activity for that same five-day period. Under the rules, a pattern day trader must maintain minimum equity of $25,000 on any day that the customer day trades. The required minimum equity must be in the account prior to any day-trading activities. If the account falls below the $25,000 requirement, the pattern day trader will not be permitted to day trade until the account is restored to the $25,000 minimum equity level.



The rules permit a pattern day trader to trade up to four times the maintenance margin excess in the account as of the close of business of the previous day. If a pattern day trader exceeds the day-trading buying power limitation, the firm will issue a day-trading margin call to the pattern day trader. The pattern day trader will then have, at most, five business days to deposit funds to meet this day-trading margin call. Until the margin call is met, the day-trading account will be restricted to day-trading buying power of only two times maintenance margin excess based on the customer's daily total trading commitment. If the day-trading margin call is not met by the fifth business day, the account will be further restricted to trading only on a cash available basis for 90 days or until the call is met.

In short, for day trading , upto 4 times and in Positional Trading 2 times. But then there are ETF's which have smaller margin requirement thus giving you more leverage. Leverage in other instruments depends on the instruments, before there was no regulation on Leverage in Forex (in US) but from Oct 17th 2010, all the forex brokers operating from US will have to stick to maximum of 1:50 leverage. Regarding leverage in Futures/Options, they already have very low margin maintenance (but i am not sure if any broker is giving leverage on Futures also)

Regarding GCI offering trading in US markets, they are actually offering CFD's which are not the shares (but instrument to emulate like share contracts), and it is not dealt thru' any of the US exchanges (NASDAQ, NYSE, etc) but more like OTC where your broker (in this case GCI) acts as a dealer. Though CFD's are not popular for share trading, but many brokers (read Forex brokers) have CFD's for trading the indexes around the world (most used to hedge portfolio (risk spreading)).

Regarding $7, i am sure you must have heard Scottrade (as their $7/order has been very widely known, kinda like Rs 9/lot of RKG), there are other brokers offering lower brokerages, (though most of the US brokers charge /order, you may find some brokers like thinkorswim who have /share commissions) (but other than these there are so many hidden (not hidden per se but not known widely) charges, like opening, maintenance, software, money transfer to/fro et cetera, see https://www.thinkorswim.com/tos/myAccounts/displayRates.tos )

 

[kuthapi]

Hello everybody

hi anuragmunjal sir,
I am posting its links here if anybody want can download

http://www.megaupload.com/?d=U2Y8VTUM

Thanks

 

[shabsaif]

Is it? I don't think that naming our broker is against forum rules. Ok, fine the information you have given is enough.

About brokerage, you said that two years back you had to pay more i.e. Rs. 50/- per crore and now you are paying Rs. 300/- per crore. Then it should be higher than before.(or its wrongly entered Rs. 50/- instead of Rs. 500/-).

So you are into commodity jobbing??? Got any experience in capital market?(jobbing) and the above brokerage is for commodity not for cash market, am i right?

You are paying 30-40 grand a month as brokerage. ooooohhhhh I can't even able to think about it. Its tooooo much for me. I can't really afford that.

What about services of BEZEL Could you please mention the advantage and weekness of BEZEL. Thanks