How to Understand Index Options Trading

February 16, 2022

How to Understand Index Options Trading

 

Finance Minister Nirmala Sitharaman tabled the Union budget 2019 a few days back. For equity markets, it included a proposal to impose taxes on share buybacks. Along with this the news of lack of changes on long term capital gains tax on equity funds and the proposal to increase the minimum public shareholding from 25 to 35 per cent left stock market investors disappointed. In order to understand the impact of these proposed reforms on the stock market and the ordinary investor, let us look at the what is index trading and what are the index trading options in India.