| align="center"> | | | | In some especial cases the investors have to take |
| Nifty options are simple vanilla options. Itâs | | | | unlimited risk that is really difficult for the new |
| mainly the European options by the nature. There are | | | | investors or the people who have shortage of capital. |
| lots of nifty options available within different strikes | | | | There is not any alternate way that can lessen the |
| and have a small difference of 50 points between | | | | risk of these options like writing uncovered options. |
| every option. | | | | In some especial cases the investors have to take |
| There are some of advantages and disadvantages of | | | | unlimited risk that is really difficult for the new |
| nifty option. Here, I try to discuss al these briefly as | | | | investors or the people who have shortage of capital. |
| an aid to the investors especially for the new comers | | | | There is not any alternate way that can lessen the |
| in the option trading. | | | | risk of these options like writing uncovered options. |
| Advantages of nifty trading: | | | | In the nifty option anyone can easily formulate any |
| Flexibility is one of most important advantages of | | | | plan to take benefit of volatility of the primary |
| nifty option. It can easily be used within a wide range | | | | stocks as well as the prices. Most of the investors |
| of strategies like very conservative to the high risk. | | | | take these disadvantages seriously and try their best |
| Second one is the leverage. Nifty option facilitates an | | | | to make their step free of any danger. There are so |
| investor a fixed leverage without being committed to | | | | many sites in the online that is ready to help the |
| trade. | | | | investors with lots tips given by the market experts, |
| Third one is the limited risk. The amount of risk is so | | | | market news and with the analytic report regarding |
| small that you donât need to worry about it | | | | future market situation as well. an ISO 9001-2008 |
| at all. | | | | CERTIFIED COMPANY, provides tips and research |
| The last one is hedging. It allows the investors to | | | | analysis for indian stock market, options, stock |
| alter or change their position to a suitable one when | | | | futures, commodity, midcaps and index futures. any |
| the stock price extensively fluctuates. | | | | one can join and get benefit of research. |
| Disadvantages of nifty trading: | | | | Report this article |
| Nifty option has a bit higher cost in the percentage | | | | This article is free for republishing |
| than trading the primary stock. This cost can | | | | Source: |
| significantly eat the profit. | | | | Republish this article |
| Liquidity is another drawback of this option. As there | | | | |
| is lots of array of various prices available, some | | | | Ask a Question About this Article |
| investors experience low liquidity that creates | | | | >> Anyone starting to feel unmotivated in |
| complexity in the trading. | | | | school?â |
| Nifty options are so complex that it requires a close | | | | >> When will next drilling take place at Nevada |
| observation and the maintenance as well. | | | | Gold Holdings Inc. |
| Time decay is another most important drawback of | | | | >> Is anyone looking for businesses to invest |
| the nifty option. As almost all the options are time | | | | in? |
| sensitive, a good number of options expire | | | | >> How can I make my booth more |
| worthlessly. This only happens with the investors | | | | attractive? |
| who like to purchase the options. | | | | |