- Index is the most tracked instrument by all market participants.
- Index survives even if the company is shut as new companies have replaced the role in the economy.
- Index can be used to Hedge the investment based on portfolio beta calculation.
- The correlated index allows Index trader to make strategies and adjustments in both indices as a striker and non-striker batsman.
- Far expiries contracts are also liquid for index, so applying calendar spread strategy gets easy.
- A trader wastes most of his energy in catching the direction of stocks whereas an index trader efficiently uses his energy to make a strategy for deployment.
- All companies, institutions reports and even sitting government performances are benchmarked with index view.
- Largest traded and liquid instrument in the market. (BankNifty, Nifty)
Trader?? Or Index Trader
