
Index Futures
Index futures are derivative contracts tied to an underlying index, such as Nifty Bank, Finnifty, or Nifty 50, reflecting sectoral, thematic, or benchmark performance. They allow traders to speculate on or hedge against the movement of an entire index rather than individual stocks. By trading index futures, investors mitigate the risks associated with single-share volatility, gaining exposure to a broader market segment. This approach simplifies risk management and offers a cost-effective way to engage with market trends, leveraging the collective performance of the index’s components.
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