HDFC Bank Limited
Education

Part 10 Trade Like Institutions

34
Option Trading in India (NSE)

In India, the National Stock Exchange (NSE) is the largest options market globally in terms of contracts traded.

Features of Indian Options:

Cash-settled for indices (NIFTY, FINNIFTY, BANKNIFTY)

Stock options are physically settled

Weekly expiries every Thursday (for index)

Monthly expiries for stocks

Index options are preferred because they:

Have high liquidity

Offer tight spreads

Enable sophisticated strategies

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