Is it possible to do scalping (15-20 Trades/day) in Bank Nifty Option (200 Lots) without any slippage.
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In ATM and OTM bank nifty options, Liquidity will be high enough in current week expiry for 200 lots . you can put limit order for 200 lots. however there will be always risk as Bank nifty highly volatile also, Which makes before your order filled, price can move up/down resulting in delayed entry or partial entry or no entry at all.
People do hundreads of trade… 15-20 is nothing for Bank nifty.
How much is needed to do 100 trades in BN with 200 lots?
Since he is asking for scalping, I presume it is option buying. Price Varies strike to strike and varies according to days left for expiry.
Say for Bank nifty strike with 350-400 premium, to buy 200 lots 17.5 to 20 L sufficient.
hypothetically, 20L is sufficient to 100 trades ignoring Profit/Loss made during any trade… to remind you again he is taking about scalp.
Risk Management is altogether is separate topic for discussion. I have answered above only on liquidity part…
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How much price buffer should I use as Limit order so the order gets fulfilled
I usually don’t get any slippage on atm/otm options upto 4500 quantity of banknifty (under normal market conditions).
Above that is a hit/miss with atm options. This quantity can be scaled up to 4-5x this amount as you go further otm.
Hi, Ashwin…can I ask you a follow up ques regarding your answer?
What exactly do you mean by hit/miss? Considering a market order do you mean Slippage? if so how much??
Also, can this thing be done with slightly in the money, between 100-200 points in the money…where premium is between 300-400.