Whats your average holding period of a derivative?

sangram1705

Well-Known Member
#2
i am new to trading and investing.

are you guys holding derivatives for some minutes (if high no. trades are allowed) or for hours or until expiry like say for month.

thanks.
derivatives means driiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiive fast.
specially with options.
(AS [PER MY VIEW. u will get different answers)

depends on trading style. some people prefer options for a little longer & futures for ultra short term.

anyways thats not important. why u asked this question is more important. in my smalll experience i hv learnt one thing only that " it is important to know urself rather than knowing about others/market"
best of luck!!!!!!!!!!!!
 
#3
derivatives means driiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiive fast.
specially with options.
(AS [PER MY VIEW. u will get different answers)

depends on trading style. some people prefer options for a little longer & futures for ultra short term.

anyways thats not important. why u asked this question is more important. in my smalll experience i hv learnt one thing only that " it is important to know urself rather than knowing about others/market"
best of luck!!!!!!!!!!!!
i have heard some people holding futures/options for 2-5 mins. :confused:
i dont find it reliable opinion, so just wanted to know is it allowed or not as per 'rules' if there are any.
 

amsin21

Well-Known Member
#4
i have heard some people holding futures/options for 2-5 mins. :confused:
i dont find it reliable opinion, so just wanted to know is it allowed or not as per 'rules' if there are any.
Bro, There is no rules for holding period. You can take position and cover the same immediately if you like or you can hold till expiry or till as per your strategy exit. 2-5 minutes falls under scalping where traders take positions in and out at small intervals and small profits many times a session. Common time frames for scalping are tick,1 minute and 5 minutes charts.

Day traders defer from scalpers in taking positions, they normally takes only 1-3 times a day.
 

mt4trader

Well-Known Member
#5
it very surprised to know high frequency traders in nymex less than second.
they buy and sell less than second. they are stoploss hunters
 

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