Kotak Mahindra Bank Limited
Education

Part 1 Candle Stick Pattern

24
Advantages of Option Trading

Leverage: Options allow traders to control a large amount of underlying assets with smaller capital outlay.

Flexibility: Options can be used for speculation, hedging, or income generation.

Defined Risk: When buying options, the maximum loss is limited to the premium paid.

Portfolio Protection: Investors can use options, such as buying puts, to hedge against potential declines in stock positions.

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