Nilesh JaiswalContributor
Which is the Best Index for Option Trading?
Trading in which index gives more returns?
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The basic difference between Nifty and Bank Nifty is Volatility. Since Bank Nifty is an index of a single category, the daily movement in the index is high compared to Nifty.
If you use a short strangle or Long Strangle strategy, I suggest the Nifty index.
If you want to take directional trade, Bank Nifty gives good returns compared to Nifty.
Moreover, it is easy to keep an eye on one sector rather than all. So I strongly prefer Bank Nifty for options trading.