Determining direction of Markets?

[prasham]

Hy prasham

Credit : I get the money in my pocket and I have more trading power by my broker.

Debit : I have to pay money and my trading power gets lower by my broker.

Both way can be right. If you understand and prefer to trade debits, do that and if you prefer and understand to trade credits, do that.

DanPickUp

I understand that more or less both give the same result. Actually I was a bit worried about margins. Or do they have special package rates for spreads? Actually I am a bit confused as I am asking irrelevant questions here. I will get in touch with my broker tomorrow and lets see how it pans out.

 

[DanPickUp]

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[AW10]

I understand that more or less both give the same result. Actually I was a bit worried about margins. Or do they have special package rates for spreads? Actually I am a bit confused as I am asking irrelevant questions here. I will get in touch with my broker tomorrow and lets see how it pans out.

Prasham, whether u execute debit or credit spread, always there will be one short leg and one long leg. So always need to bring in the margin money (approx 30k) for short leg.

If that is not possible, then probably option trading is not for your account at this stage.
Scared money or small account are first to loose in this game.

Happy Trading

 

[DanPickUp]

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[prasham]

If you are proud of your self and you have any character by your self, spend the first money you make with trading to the poor and uneducated people in your country. That is the money, you usually would have to pay for a teacher in trading education. But you get it here for free until now and here is the end from my side.

Will Do :thumb:

Prasham, whether u execute debit or credit spread, always there will be one short leg and one long leg. So always need to bring in the margin money (approx 30k) for short leg.

If that is not possible, then probably option trading is not for your account at this stage.
Scared money or small account are first to loose in this game.

Well the money I use is not scared money, its hard earned money. But the amount is not a problem as I already have a portfolio in excess of INR 5L. I can pledge some shares of blue chip companies and use them as margin.

Does anyone know of a broker who offers lower commission for Option trading?

 

[DanPickUp]

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