Trade in the Indian Stock Market with NiftyAlert’s Effective Nifty Options Tips
Nifty option is another type of derivative tool that can be used to hedge the index of the NSE that is Nifty, the client can even buy a call or a put depending on the market conditions. Call if the client is bullish and put if the client is bearish on the market.
An option is a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date.
An option is a derivative. That is, its value is derived from something else. In the case of a stock option, its value is based on the underlying stock (equity). In the case of an index option, its value is based on the underlying index (equity).
An option is a security, just like a stock or bond, and constitutes a binding contract with strictly defined terms and properties.