Share market is an ocean and it needs immense patience, perseverance and hardwork to make money in this volatile market. Most people think that it is very easy to make money in the market which is absolutely not true. Unless you have done share market training in Ahmedabad and know everything about charts and fundamentals of stocks, you will end up losing all your hard earned money within a few years. Proper training implemented with patience on a correct trading method is the success of stock market profits. There are hundreds of ways to trade in the share market and it depends on the individual which trading type they choose, but we will share one of the most profitable types of trading method which most of the professional traders in India practise and make consistent profits.

Weekly Bank Nifty options

Weekly Bank Nifty options were first introduced a few years ago and have since gained a lot of popularity among traders. In order to ensure that risk is minimised and that the time to maturity is shortened, more traders were encouraged to participate in the Nifty. The Nifty weekly bank options, a low-cost way to trade Bank Nifty options, have gained popularity among traders and retail investors over the past couple of years..

How to purchase and sell Weekly Bank Nifty Options?

By acquiring options, investors and traders can participate in the index trading market. This makes indirect index investment possible. Additionally, it enables investors to have hedge positions in order to profit significantly from the banking industry. An investor has the choice to purchase or sell the index in Bank Nifty option trading, just like in any other type of options trading, but there is no requirement to do so. However, Bank Nifty options contracts will expire after a week thanks to weekly options contracts. There is no change to the rules governing options contrasts other than the shortened period before any options contract expires. It’s important to note that only some of the indexes are eligible for these weekly options contracts.

How to trade profitably in Weekly Bank Nifty options?

The Bank Nifty options have a weekly maturity, as opposed to the standard Bank Nifty options, which expire on the last Thursday of every month. The lot size of Bank Nifty options which was earlier 25 has now been reduced to 15 for the benefit of traders but the weekly options will expire on the final Thursday of every week like it used to earlier. Seven weekly options are available for trading at any given moment.

The weekly options are projected to improve trading volumes in the Bank Nifty from both an exchange and trader’s point of view. The trade and volumes were primarily focused on the Nifty for a very long time. The potential to include Bank Nifty options in the range will be provided by this weekly option. That will serve as an additional hedge.

Hedging gets a little bit more challenging because historically, bank Nifty has seen double the volatility of the Nifty. Any news tends to spread quickly since the Bank Nifty is strongly tied to the ups and downs of the global and Indian financial systems. This kind of volatility will be much better recorded by a weekly option on the Bank Nifty since the short-term swings will be better captured.

Since Bank Nifty weekly options have a shorter expiry date and less premium is required, it is quite popular amongst traders and is taught in depth at every share market course in Ahmedabad.