Intraday, A Boon For Traders
Know How Venteskraft Members Have Made Profits During The Market Crash
Senior financial trainer, Venteskraft
13th March 2020
Have you got your mask on?
Crashes in stock market are more rapid and unpredictable than corrections.The outbreak of corona virus has caused the market to fall like never before!
People prefer staying indoors and intraday trading. Public transports has been hit badly due to the widespread fear of this contagious virus which directly initiated a massive dip in the export and import department causing the demand to come down.
The OPEC meet up is yet another significant factor that has brought more weight to this matter.
The trade and production clash of petroleum between Saudi Arabia and Russia has adversely impacted the market, with Saudi’s reduction of the oil prices and increase in production. This in turn resulted in a higher supply than demand.
In the past few days the market has shown a sharp fall of about 3000 points, approx. 20.75%
This fear lead to a missed opportunity. Intraday traders have made profits by utilizing short sell mechanism.
Introduction to short sell
Its where the trader sells the stock first and buys it later. This is one way where traders can earn even during a market fall. There are different types of orders which can be used for shortselling.
- Shortselling an equity : in intraday we can short sell an equity with leverage, even when cover order is blocked. Using short sell strategies, our clients have made profits. Following are the screenshots.
- Future contract : unlike in equity stocks, here the short sell contract can be held in delivery position with leverage. As the market opened with a gap down, the gap itself can be the profit. Eg : Nifty closed at 9602 yesterday and opened at 9113 today giving a profit of 489 points per lot. i.e 489 * 75= 36675
- Buying a put option : put option premium increases when market falls. With a huge gap like mentioned above all PE contracts opened with 100+ points gap up giving 7500 profit per lot. Below are the screenshot where our members made 8-10K in intraday trading with in investment of 1K.