Suppose trader Mr. Muthuswamy feels Bank Nifty Spot will rise from 22500 to 22700, he can buy one lot (25 shares) of Bank nifty future by putting a margin with the broker of around Rs 75,000/-. Her counterparty trader B sells her Bank Nifty at that level. If Bank Nifty rises to, say, 22700 A has the right to SELL the index at 22700 from the counterparty and BUY it to him at 22700, gaining Rs 5000 (200×25). If the Bank Nifty futures fall to 22400, Muthuswamy will lose Rs 2500/-
Now let's understand about Bank nifty option-
Bank nifty option tips are for the traders who have very little capital to trade with Say Rs 10,000/- only. Before entering into options trading make your mind, because options trading is very risky – here you can make 2-3 times the return of capital trader or loose your entire capital in 1 day also.
Suppose trader Mr. Akash feels Bank Nifty Spot will rise from 22500 to 22700, Here he will buy a CALL OPTION or you can say CE. In this 22500 call will be @ the money call option, 22400 calls will be in the money option and 22700 will be the out of money option. We believe that traders need to trade at the money call option only. So here we will buy 22500 CALL Option and if our view got correct that is Bank nifty spot moved from 22500 to 22700 which means we are getting almost 120-130 Points profit in option by investing Rs 10,000, here you will get a profit of 2500-3000.
Now let's go on the contrary side and suppose trader Mr. Akash feels Bank nifty spot will move down from 22500 to 22000, Here he will buy a PUT OPTION or you can say PE,. In this 22500 CALL will be at the money put option, 22600 will be at the money option and 22400 will be the out of money option. If we are thinking about big volatility we can go for out of the money options trade also, but if Mr. Akash thinks that the market will be range-bound only so we recommend our traders to go for at the money options trading only. Here Say Bank Nifty 22500 PUT Option trading @ 200 And our view got correct that bank nifty spot moved to 22000. Here we will get a profit of Rs 7500/- with Rs 5000/- Capital
Conclusion: Bank Nifty trading is always risky to trade, so it's recommendable to you that trade here after getting proper knowledge or trade with one of the best nifty option tips provider company in India. Because if you are trading on your own there are a lot of chances that you will vanish your entire capital and not possible for trade further also.