Ratio Trading is a scientific concept that is the “surest way to make money on the stock market” regardless of market fluctuations and swing. In other words guarantee money market consistent and stable income from the fair that large seen as a risky, unstable and volatile sector even inside players.
The negative reputation of the stock market is largely due to the practices of individual players who participate in speculation. Ratio for commercial purposes is not speculative. Rather has the potential to change the perspective of the stock market as a risky sector. For those who understand the tools and strategies of the relationship between trade and can lead to earn profit in the options market knows that the stock market can indeed be a de-risked niche.
Let’s take a close peak at some of the advantages of the ratio trading:
Ratio trading is less risky, because it is an intraday strategy where trade originates and ends in the same day. The effect of the intraday market movement ratio trading strategy is minimal. If we look at the developments in the last ten years we will see that have not fallen or risen 200 points intraday markets for more than 10 times within this period. So if we keep 200-300 points out of the money in the current market, we are almost certain not to get influenced by the market movement and be assured of profits from the market 9 times out of 10. It is the safest and surest way to make money on the financial markets.
Ratio trading strategy is based on trading in options contracts, the lowest cost product in the Indian stock market. The initial investment is therefore rather low. Since it involves intraday trading no trades are transferred to the end of the day and therefore not require any margins.
Time value decline or increase in the ratio is a continuous process, there are no specific exit and entrance points in relationship marketing. In other words ratio trading strategy is designed to be one that trade freely of stakeholders be facilitated. One can stop trading when there is uncertainty or confusion in the market and resume trading when the crisis is over.
The graph of the ratios (out of the money) in Ratio Trading is always independent of market direction. So the profit is guaranteed in this strategy, which consists of trading in small lots generating small profits that eventually build decent volumes and profit at the end of the day.
Trade remains unaffected by the increase in the number of participants and increase in volume. Instead of competition only serves to open the door for more opportunities as more competition means more volume, more volatility, more mis-pricing, more imperfection in relationships -. all culminating in greater opportunities and more profits