Nifty 50 Index
Education

Part 2 Ride The Big Moves

55
Advantages of Option Trading

Option trading offers several benefits:

Leverage: Small premiums control large positions, magnifying potential returns.

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

Limited Risk for Buyers: The maximum loss for option buyers is limited to the premium paid.

Diverse Strategies: Traders can design complex setups for any market condition.

Portfolio Protection: Helps reduce downside risks without liquidating assets.
Because of these advantages, options have become integral to both institutional and retail trading strategies worldwide.

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