Why to trade in Nifty Future instead of Stock Future
1. You do not have to diversify with multiple stocks for
equity exposure, the index is already diversified.
2. The risk of any one stock having something catastrophic
happen will not really hurt your trade. No one stock has more than a 3%
weighting.
3. The Nifty Future is much harder to manipulate than
individual stocks due to its size and volume of trading.
4. Nifty Future move much more smoothly around support and
resistance areas than most individual stocks.
5. Nifty 50 has its own survivor bias replacing it holding of
falling stocks with new ones that are growing in market capitalization.
6. You do not have to deal with earnings surprises like in
individual stocks.
7. Due to the indexes much lower volatility you can trade
larger position sizes with much less risk.
8. The Nifty options are very liquid with very tight big ask
spreads.
9. With this index you can trade the trend of the stock market
itself which is a
much
broader bet than any one company or sector.
10. Margin required for trading Nifty Future is quiet less as
compared to Stock Futures
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