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Learn Institutional TradingInvesting Investing means putting your money into assets (like stocks, real estate, gold, or mutual funds) to grow your wealth over time. It’s usually long-term, focused on building value and achieving goals like retirement or buying a house. Divergence Trading Divergence trading is when you compare the price of a stock with an indicator (like RSI or MACD). If the stock is going up, but the indicator is going down (or vice versa), it shows divergence—a possible signal that the price might reverse soon.
NSE:NIFTYEducation
by SkyTradingZone
6
Learn Institutional Option Trading Part-6Mutual Funds in India: Mutual funds pool money from multiple investors and invest in a diversified portfolio. Types: Equity Mutual Funds Debt Mutual Funds Hybrid Funds Index Funds & ETFs Systematic Investment Plan (SIP) is a popular method to invest monthly with discipline. Government Schemes: PPF (Public Provident Fund) NSC (National Savings Certificate) EPF (Employees Provident Fund) These are safe, tax-efficient, and suitable for conservative investors.
NSE:BANKNIFTY1!Education
by SkyTradingZone
5
Learn Institutional Option Trading Part-5Stock Market Investing: Stock investing involves buying shares of publicly traded companies listed on NSE or BSE. Why Indians Invest in Stocks: Potential for higher returns. Dividend income. Portfolio diversification. Approaches to Investing: Fundamental Analysis: Based on financial health, growth potential, and management quality. Technical Analysis: Based on price patterns, volumes, and charts. Long-Term Investing: Holding stocks for years to build wealth. Short-Term Trading: Buying and selling stocks within days or weeks.
BSE:SENSEXEducation
by SkyTradingZone
4
Learn Institutional Option Trading Part-2Option Greeks in India: Delta: Measures sensitivity to price changes. Theta: Measures time decay. Vega: Measures sensitivity to volatility. Gamma: Measures change in Delta. Indian traders use these Greeks to manage risk and optimize strategies. Risks in Indian Option Trading: Premium Decay: Loss in value as expiry approaches. High Volatility: Can cause sudden losses. Liquidity Risk: Some options have low trading volume. Complexity: Requires deep market knowledge.
NSE:BANKNIFTYEducation
by SkyTradingZone
Learn Institutional Option Trading Part-3In India, options are traded primarily on: NSE (National Stock Exchange) BSE (Bombay Stock Exchange) The Securities and Exchange Board of India (SEBI) regulates the derivatives market and ensures fair practices. Why is Option Trading Popular in India? Leverage: Traders can control large positions with small capital. Hedging: Investors use options to protect their portfolios from market fluctuations. Income Generation: Strategies like covered calls can provide regular income. Speculation: Traders can bet on price movements with limited risk.
OANDA:BTCUSDEducation
by SkyTradingZone
6
Learn Advanced Institutional TradingOption trading is a part of the derivatives market where investors buy and sell contracts known as options. These contracts derive their value from an underlying asset, which can be a stock, index, commodity, or currency. In India, the most commonly traded options are based on Nifty 50, Bank Nifty, and stocks like Reliance, TCS, Infosys, etc. Options give traders the right, but not the obligation, to buy or sell the underlying asset at a predetermined price (strike price) before or on the expiry date. Types of Options: Call Option: Gives the buyer the right to buy the underlying asset. Put Option: Gives the buyer the right to sell the underlying asset.
NSE:NIFTYEducation
by SkyTradingZone
3
Option TradingIndia’s financial markets are rapidly evolving, and the participation of retail investors, institutions, and foreign players has significantly increased over the past two decades. Among various investment avenues, option trading, equity investing, and gold trading have become the most prominent ways of wealth creation and hedging against risks. Each of these segments has its unique importance, strategies, and regulatory frameworks in India. This guide will help you understand the core concepts, market structure, strategies, and risks associated with Indian Option Trading, Equity Investing, and Gold Trading in a simple and practical manner.
NSE:BANKNIFTYEducation
by SkyTradingZone
2
Institutions Option Database TradingDatabase Option Trading is a powerful blend of market logic and data science. With structured data, intelligent scanning, and strategic execution, traders gain a massive edge over emotional/manual decisions. This approach is ideal for traders aiming for consistent performance, lower drawdowns, and systematic growth. The more you code, automate, and analyze—the better you trade. Sample Strategy - PCR + OI Spike Strategy Logic: If PCR > 1.3 and Call OI Spike at ATM > 15%, initiate a Put Sell. Exit when PCR drops below 1.1 or OI unwinds. Backtest Results (NIFTY Options): Win Rate: 72% Avg Profit per Trade: ₹4800 Max Drawdown: ₹9800
NSE:HDFCBANKEducation
by SkyTradingZone
2
Long Term Database TradingHow Institutions Use Option Databases 🔍 Institutional Insights: Banks & HFTs (High-Frequency Traders) run option strategies over petabytes of data. Real-time arbitrage opportunities are found using option databases. They model Vega, Theta & IV impact per stock and expiry. Example Institutional Workflow: Pull 10 years of NIFTY options. Train ML model to predict next-day IV. Execute based on high-probability straddles/strangles. Exit before expiry using trailing delta hedge.
NSE:NIFTYEducation
by SkyTradingZone
3
Database Trading Introduction to Database Option Trading Database Option Trading is an advanced strategy where traders use massive historical and real-time market data stored in structured databases to identify profitable option trades. Unlike conventional trading, this approach focuses on data-driven decision-making—leveraging algorithms, statistics, and pattern recognition rather than pure technical/fundamental analysis. 2. The Role of Data in Option Trading Types of Data Used: Option Chain Data: Strike prices, premiums, LTP, OI, IV, volume. Historical Data: Past price action, volatility, Greeks, PCR. Sentiment Data: FII/DII positions, news sentiment. Real-Time Market Feeds: Tick-by-tick updates. Macroeconomic Data: Interest rates, inflation, events.
NSE:BANKNIFTYEducation
by SkyTradingZone
1
All Major Indices Review in Few Minutes Here are the **major indices of the Indian stock market**, categorized by exchange and segment: --- ## 🇮🇳 **Major Indian Stock Market Indices** ### 🔷 **On NSE (National Stock Exchange)** | Index | Description | | -------------------------------- | ------------------------------------------------------------------------------------------- | | **Nifty 50** | Benchmark index of the NSE comprising the 50 largest and most liquid stocks across sectors. | | **Nifty Next 50** (Nifty Junior) | Represents 50 companies ranked after the Nifty 50 in terms of free-float market cap. | | **Nifty Bank** | Includes the 12 most liquid and large banking stocks. | | **Nifty Financial Services** | Covers banks, NBFCs, and insurance companies. | | **Nifty IT** | Consists of major IT companies like TCS, Infosys, Wipro, etc. | | **Nifty FMCG** | Tracks the performance of Fast-Moving Consumer Goods companies. | | **Nifty Auto** | Represents automobile manufacturing companies. | | **Nifty Pharma** | Contains top pharmaceutical companies. | | **Nifty Metal** | Focuses on companies from the metal sector. | | **Nifty Realty** | Tracks real estate sector performance. | | **Nifty Midcap 150** | Covers the top 150 mid-sized companies. | | **Nifty Smallcap 250** | Focuses on 250 small-cap companies. | --- ### 🔶 **On BSE (Bombay Stock Exchange)** | Index | Description | | ----------------------------------------------------- | --------------------------------------------------------------------- | | **Sensex** | Flagship index of BSE, includes 30 large, well-established companies. | | **BSE 100** | Represents the top 100 companies on BSE. | | **BSE 200** | A broader index that includes 200 companies. | | **BSE 500** | Captures 93% of total BSE market capitalization. | | **BSE Midcap** | Mid-sized companies listed on the BSE. | | **BSE Smallcap** | Small-sized companies with growth potential. | | **BSE Bankex** | Focuses on the banking sector. | | **BSE IT** | Includes leading IT companies. | | **BSE FMCG / BSE Auto / BSE Healthcare / BSE Realty** | Sector-specific indices similar to NSE counterparts. | --- ## 📊 **Other Specialized Indices** | Index | Type | | ------------------------------------------- | --------------------------------------------------- | | **India VIX** | Volatility Index (fear gauge of the market) | | **Nifty ESG** | Based on Environmental, Social & Governance metrics | | **Nifty Alpha / Low Volatility / Momentum** | Smart beta indices for factor-based investing | --- Thanks & Regards Mohinder Singh The Golden Farms of Equity
NSE:CNXREALTY
by TheGoldenFarmsofEquity
Learn Institution Trading Part -6Introduction to Institutional Option Trading Institutional option trading refers to the sophisticated strategies used by hedge funds, mutual funds, insurance companies, proprietary trading firms, and foreign institutional investors (FIIs) to manage portfolios, hedge risks, and generate consistent alpha from the derivatives market. Unlike retail traders, institutions operate with large capital, access to advanced technology, and deep market insights, allowing them to structure complex trades. 2. Why Institutions Trade Options Institutions don’t usually trade options for quick profits. Their trades are designed to meet broader objectives: Hedging Equity Portfolios Volatility Trading Generating Yield on Holdings Market Making and Arbitrage Directional or Non-directional Speculation 3. Core Institutional Option Strategies Let’s explore the most popular strategies that institutions use with real-world logic behind them. A. Covered Call (Buy-Write) Use: Income generation from long-term stock holdings Structure: Buy stock + Sell Call Option (OTM or ATM) Institutional Use Case: A mutual fund holding Reliance shares might sell monthly call options against its holdings to generate monthly income (premium), enhancing total returns.
NSE:BANKNIFTYEducation
by SkyTradingZone
7