I m not trading since long time due to home renovation work going on. I did mention this in few of many earlier posts.
Yes, I will start to trade again but still I m keeping touch.
Well I do believe big players do have automatic softwares (robots) which trade endlessly all day long & earn big profits.
That magical thing will remain out of reach from masses until it stops working efficiently.
Same like various indicators in technical analysis which were secretly kept with big players until those indicators lost their efficiency & failed to work. So they were out & became available to poor men like us!
In currency trading 1 lot make no sense,most of the time profit will be eaten by brokerage and charges. Buying USDINR 65 call is lottery ticket,are closed both?
I’m still learning to trade so that’s the reason working with 1 lot. How many lots do you usually trade with?
USDINR 65 is exactly as you described lottery ticket. Due to last minute rush at work couldn’t close both though I was running on profit. Need to see what happens on Monday
I take normally 20 to 50 in special situation 100 and even 200 lots. Both position will be loss making on next week, GBPINR sell position and USDINR 64 put will work better.
I maybe incorrect. I feel that spot price is governed by Forex and futures price on NSE is indian stock market specific. So futures price on NSE is governed by NSE in anticipation to FOREX.
So the order flow in usd/inr future in nse has no impact on price movement of usd/inr future?
I mean if someone buys very large amount of usd/inr future then how will price movement react to this order.and also can it change spot prices of usd/inr?
Well futures are always linked with spot prices. Futures move in premium or discount, ahead of spot ( that’s why the name future) but “in anticipation” to spot.
You can’t ignore the underlying (spot) . Yes even if someone buys huge quantity in futures but the price may trade at premium but the price will always be associated with spot.
If spot declines, many other sellers will start selling at price near to “in response to spot”
The LTP will always get updated in response to SPOT.
Temporarily , the futures price may rise or fall slightly , and that’s why they are futures!
Nifty recovered from low of 300 levels & trading in green. Did u still not see 300+ points rally already. I was 200% sure that nifty will bounce back.
Nothing surprising in it. Every dip was a golden opportunity for traders but very rare traders bought at lower levels today!!