NF or BNF for Scalping?

[Bhairava]

Hello All,
which one is the best for scalping NF or BNF??
And Why?

 

[Happy_Singh]

Hello All,

Hello

which one is the best for scalping NF or BNF??

Neither

And Why?

Cost - Taxes


Happy

 

[travi]

Hello All,
which one is the best for scalping NF or BNF??
And Why?

BNF would be better because it has more movement, their options are more volatile and given you can also use weekly options, the short expiry adds to the volatility.

Also, my 2 cents, volatility is a double edged sword. I hope you understand that.

 

[RISK_REWARD]

Hello







Cost - Taxes


Happy

My guru says all scalper don't have hair (because of over trade):lol:

 

[mkbsiva]

Hello All,
which one is the best for scalping NF or BNF??
And Why?

If you are scalping for a few points, then BNF is better than NF as the volatility acts as a plus in it. Bank Nifty options are better than futures as you need to pay less taxes and so the breakeven is less.

i do scalp trades on BN options and it is going fine for me....

 

[Bhairava]

If you are scalping for a few points, then BNF is better than NF as the volatility acts as a plus in it. Bank Nifty options are better than futures as you need to pay less taxes and so the breakeven is less.

i do scalp trades on BN options and it is going fine for me....

How many points do you consider for BNF option scalping?

 

[travi]

How many points do you consider for BNF option scalping?

This depends on the market condition, you have to read this very well.
In sideways, you could try 15-20pts with a 10pt SL or a bit less, your neighbourhood HFT does 5pts
On trend days, you can expect more, often, scalping will turn into a longer TF hold and you can add to your position.
Subhadip Da has a nice 4:2:1 ratio of adding, if your entry is 1 Lot, then revise with adding second 1 Lot to entry and TSL = entry.
Need not mention that you have to be very quick in executing trades.

 

[mkbsiva]

How many points do you consider for BNF option scalping?

This depends on the market condition, you have to read this very well.
In sideways, you could try 15-20pts with a 10pt SL or a bit less, your neighbourhood HFT does 5pts
On trend days, you can expect more, often, scalping will turn into a longer TF hold and you can add to your position.
Subhadip Da has a nice 4:2:1 ratio of adding, if your entry is 1 Lot, then revise with adding second 1 Lot to entry and TSL = entry.
Need not mention that you have to be very quick in executing trades.

travi has said more than enough in this.... I am a pure PA trader. i take trades in 1 min chart on 3 min chart... u have to be fast and nimble or else you will be thrown out.

answering your question... I have taken 5 points to more than 100 points also...

giving an example... today after closing my short trade, i took a scalp(1 min) on the long side at 19278 in 11:02 bar. As travi said rightly, then i changed it to a 3 min TF long after it went above 19300 with a stop below at 19270, then closed the trade at 19405 as it is a BRN.

 

[Bhairava]

giving an example... today after closing my short trade, i took a scalp(1 min) on the long side at 19278 in 11:02 bar. As travi said rightly, then i changed it to a 3 min TF long after it went above 19300 with a stop below at 19270, then closed the trade at 19405 as it is a BRN.

What kind of buy-sell order type do you use for such quick scalps?
I scalp Stock fut on 3tf using SL-M orders,but it gives a jump of 0.50-0.75paisa sometimes.

 

[travi]

What kind of buy-sell order type do you use for such quick scalps?
I scalp Stock fut on 3tf using SL-M orders,but it gives a jump of 0.50-0.75paisa sometimes.

The more liquid an instrument, the smaller the gaps will be in bids and asks.
LTP will move more smoothly, ever tried BNF?
Look for instruments that have large turnover, large OI, large volumes and large TSQ/TBQ.

In BNF also, if you try scalping 18000 PE when spot is 19500, you will face the same issue. Look for large parameters mentioned above.