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Wednesday, March 31, 2010

Fw: 20 point movement in Nifty can earn you 1000 rupees


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Best Regards
 
Vikas Thakur
Capital Placement Services.
Gurgaon Haryana India
capitalhr@gmail.com
09899409300
 
http://in.linkedin.com/in/capitalplacement
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----- Original Message -----
Sent: Wednesday, March 31, 2010 12:26 PM
Subject: 20 point movement in Nifty can earn you 1000 rupees

 

Dear Vikas Thakur,

Each time, the market closes 20 points higher or 30 points lower, does it set you thinking on how you could have made the most of it?

Well it certainly made Vikas Mehra wonder. Vikas was attending an 'F&O Simplified' session in Delhi when he posed this question to Vidisha, our trainer (by the way, should you wish to attend these sessions yourself, do click here for details).

Let me try and explain how simple this could be..

For now, let us briefly understand what can be achieved in these market movements.

If you think markets are likely to go up and you can Buy Nifty futures. 20 points

 

upward movement in NIFTY will give you a profit of Rs. 1,000 { 50 (lot size) * 20 points }

Now let us assume you have a view that markets will go down. You can take a Sell

position on Nifty. In case Nifty goes down by 30 points, you would earn a profit of Rs. 1,500 { 50 (lot size) * 30 points }

The reverse of both situations can lead to loss in case your view has gone wrong. If you trade with a Stop loss of 10 points, your maximum loss would be limited. 20 points (+) / (-) movement happens in market invariably on a daily basis.

What is important in Futures and Options is to predict the directional trend of the Market or Stock correctly and put a Stop Loss to protect your down side.

At ICICIdirect.com, with our award winning Research we try to help you take right trading calls. We have got calls suited to all your Trading needs. Each of our calls are recorded and evaluated. Click here to review our Research Performance.

Before Opening Bell i.e. 9 AM in the morning, we give you Daily Derivatives and Daily Calls which gives you Stock Ideas and Strategies for the day. This is available at Research Section. At iCLICK-2-GAIN, we give timely recommendations and Strategies on Index, Stock Futures all through out the day.

In fact we have an entire section on Research to help you take the right call. Once you logon to the website, in F&O section you would see 'Derivatives World'. Derivatives World is our newly launched technical tool which gives you what strategy to adopt. All you need to do is just mention your 'Risk Appetite' and 'Expectation of NIFTY'. We will give the strategy for you.

If you wish to learn more about Derivatives, simply click and read our detailed Study Notes on what Futures and Options is all about. There is Question session in the end which will tell you whether you become an expert.

Alternatively, you can walk into your nearest ICICIdirect Financial Superstore and speak to our Relationship Manager who would guide on the nuances of F&O Trading or simply call our Customer care number to execute your order.

So Happy Trading!
Best regards,
Vishal Gulechha
Head - Equity Product Group
ICICIdirect.com
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