Index funds are a type of mutual fund or exchange-traded fund (ETF) that aim to replicate the performance of a specific market index, such as the Nifty or Sensex. They are passively managed, meaning they do not try to beat the market, but rather aim to match its performance. Index funds are considered a low-cost alternative to actively managed mutual funds because they do not require the same level of research and analysis and therefore have lower expense ratios. Lower Cost Investing or trading in the stock market involves costs such as brokerages and taxes that must be paid by the investor or trader. Active mutual funds generally have higher costs due to a larger number of transactions. On the other hand, index funds, which are passively managed, have lower costs. It is easy for investors to purchase ETFs through their broker's platform and they only need to pay standard brokerage and taxes on the initial investment. There are no additional yearly expenses required. Diversificatio
Options price is affected by several factors including changes in the underlying asset price, time to expiration, market supply and demand, interest rates, economic and geopolitical events, and investor sentiment. The factors for which there is a quantitative change in price are called Greeks i.e. Delta, Gamma, Vega & Theta. Today we will talk about Delta !! What is Delta? Delta is a key metric in options trading that measures the change in the price of an option relative to a change in the underlying asset. It represents the expected movement of an option's price for every one-point move in the underlying stock or asset. How to read Delta ?? It is expressed as a decimal between -1 to 1. Here is how to interpret option delta: Call Option Delta : A call option delta of 0.5 means that the option has a 50% chance of expiring in the money. A delta value greater than 0.5 indicates that the option is likely to increase in value if the underlying asset increases. Put