Understanding Risk Management

Important Disclosure

The risk management guidelines provided herein are for informational purposes only and should not be taken as financial advice or a comprehensive risk management strategy. While we aim to offer useful insights, it is crucial to understand that scalping in financial markets carries inherent risks, and individual circumstances vary significantly.

Approach

• Scalper terminal has built in trade limit, 50 trades/day
• Forces you to be patience and use trade wisely
• If the trade limit is hit, you cannot trade from scalper terminal until tomorrow
• You have a strategy to follow, no random trades, no random lot size
• Scalper terminal shows pnl with tax, So know when to stop. Accept profit or loss

Minimum Capital Required

Scalper terminal allows you to scalp options of the nearest expiry. BankNifty weekly expiry starts on thursday where premiums are as high as ~500

quantity	~premium	max order	math	capital
15	500	4	= 15 x 500 x 4(2 call and 2 put)	30k
30	500	4	= 30 x 500 x 4(2 call and 2 put)	60k

Follow Rules

Scalping is all about probability and statistics. Trade lot size for which you have enough capital, even after taking loss

Follow Strategy

Remember its scalping and not direction trading. With scalper terminal, you can change view Long to Short and vice versa in a flash

Statistics and Probability

1. Stats say always start with half-risk
2. Do not take big loss, that’s not scalping, keep profit and loss small within ~target 20 pts
3. Enter / Exit within a few minutes, Time is enemy for option Buyers
4. adjust positions, exit/go-double/re-enter/repeat
5. No profit is better than loss

Broker terminal

Always have broker terminal open all the time on laptop and mobile both, to avoid if for any reason there’s a technical glitch or any other issues with scalper terminal

1%

1. Protects capital & mental health
2. you should know, Its one thing to win and its another thing to be consistent