Options trading can be a complicated subject for many new traders but learning Options trading can benefit you in following ways:
- Options have the potential to deliver higher percentage returns
- Options are less risky than Equity as less capital is engaged
- Options offer a number of strategic alternatives to reduce risk
But many people complicate this subject on Options trading and end up loosing their capital trading the wrong way.
If you really want to make money consistently from trading Options then I recommend you to learn the basics and just follow the FII’s trades you will make money 97% of the times!
Importance of FII-DII-CLIENT-PRO open interest data
- The retail trader is not aware of the positions of professional traders.
- Professional traders drive the market in the direction where they can get the maximum profit.
- Open interest is the total number of outstanding future and option contracts that have open positions.
- So if they are holding the positions it will reflect in open interest data.
- Higher the open interest higher the risk or either for FII-DII-PRO
- The key point is Client always have highest positions but they have limited capital and less risk-taking abilities
- Focus on the second-highest open interest position they have greater risk and deploy large money as compared to others.
- FII-DII always trade against each other
- Therefore the position of PRO is very critical
- If the position if FII and PRO is in the same direction and against the client position
- The market will move according to FII and PRO positions. They are controlling the market
If you have read this article, Till this end.
Then you must be having an urge to become a better trader and for those kind-off people , our channel exists.
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