How can I trade in Nifty as a beginner?

Explains Nifty trading for beginners.

You can trade in Nifty in 2 ways. 1. Either buying or selling Nifty LOTS in "Futures segment", or 2. Buying or selling CALLS or PUTS in "Options segment". Both of these will need you to trade in certain minimum quantity. in case of Nifty this is 75, also called "LOT" size. So you can trade in 75 quantity (1 LOT), or in 150 (2 LOTS), or in 225 (3 LOTS), and so on... Futures trading is simple, very much like buying and selling regular Equity stocks. All the same rules apply, except that your holding period is to be selected at the time of starting the trade itself. Its called expiry date. Nifty expires every Thursday. So you can start a Buy trade, or a Sell trade on Friday or Monday etc, and hold it till coming Thursday. You can also choose a later Thursday, instead of coming Thursday. You can see all possible expiry dates here: https://munafasutra.com/nse/options/nifty/ The data displayed on that page is always for most recent closest expiry date, in this case 27 June 2019 Suppose if you "buy" Nifty futures on Monday, select expiry of coming Thursday (27 June), then you can keep this position open till Thursday. On Thursday, your broker will automatically close this position, and will "sell" your position. Likewise, if you "sell" Nifty on Monday, then broker will automatically "buy" Nifty on Thursday and will square off your position. You make profit if your "sell" price is higher than "buy" price. You can also square off your open position yourself in between also. No need to wait till Thursday. Remember one thing when trading in Futures. Never forget stoploss. If you forget to put a stoploss, and trade starts going bad, then you ar open to making HUGE losses. Never forget stoploss, ok? Options trading is little different. In options trading, if you think that Nifty will move up, then you can BUY CALLS. (CE) If you think it will fall, then you can BUY PUTS (PE) In Options buying, you will be asked to select a "strike" price. I generally select a strike price which is not very far from current price. For example, Nifty is at 11724 currently, also called SPOT price. Near by strike prices are 11600, 11650, 11700, 11750, 11800 etc If you are buying a PUT, then always select a strike price which is "below" current price. If you are buying a CALL, then always select a strike price which is "above" current price. As a rule of thumb, you will make profit when current price crosses strike price. Sometimes you will start making profit sooner also, because of volatility. For example, Spot of Nifty is at 11724. You bought PUT of strike 11650 If Nifty falls to 11625 etc, then you are in profit (generally) Suppose you bought CALL of strike 11750, then you will come in profit when current price goes above 11750 (generally). There is also a factor called "Time Decay". This is what is causing the "generally" part in the statements above. If time decay is too much, and even if current price crosses your strike price "little bit", still you will be making a loss. Just like FUTURES, Options also have expiry dates. Same thing, on Thursday. You can check expiry dates and charts using the above link. You should also read this article about "Basics of CALL and PUT" https://munafasutra.com/post/basicsOfOptionsCallAndPut This will help you understand the concept of CALL & PUT better. This article will also explain Time Decay in brief. Since you are new, so don't get into Options "selling" immediately. You can make a big loss if you are not careful.

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