How to Trade Successfully on Expiry Day: Key Tips and Strategies

Learn effective strategies for trading on expiry day, manage risks, and enhance your market performance.

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To trade on expiry day, monitor volatility closely as prices can fluctuate significantly. Ensure having a clear strategy, whether it’s closing positions, rolling them over, or entering new ones. Use stop-loss orders to manage risk effectively. Stay updated on relevant news and events that might impact the market. Effective time management is key; avoid last-minute trades to minimize errors.

FAQs & Answers

  1. What is expiry day in trading? Expiry day is when options and futures contracts expire, leading to significant market volatility.
  2. What strategies should I use on expiry day? Use strategies like rolling over positions, closing them early, and making timely entries and exits.
  3. How can I minimize risk on expiry day? Utilize stop-loss orders and stay informed on market news to manage risk effectively.