Why trade in index Option ?

In Index options trading the underlying asset is an Index(Nifty, Bank Nifty, etc). Index option is a security that allows the owner to buy or sell underlying assets at specified price by a specified date. Characteristics of Index Option There is an underlying index. Expiration date Strike price Right to buy/sell underlying Index. Advantages to trade in index option Diversification: Index Option is a compilation of many individual stocks. In index Option, trading traders can construct strategies to bet on the entire market rather than the performance of one individual ...
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