NIFTY50 TR 2x Leverage Index


#1

How to interpret & analyze the below indices. Where there are useful

NIFTY50 TR 2x Leverage Index
NIFTY50 PR 2x Leverage Index
NIFTY50 PR 1x Inverse Index
NIFTY50 TR 1x Inverse Index


#2

Plz use @nithin bcoz he can Explain this best. :thinking:


#3

Everything is explained here, go through it.
http://www.niftyindices.com/indices/equity/strategy-indices/nifty-50-tr-2x-leverage


#4

Hello @nithin could you plz tell us will NSE allow derivative trading on NIFTY50 TR 2x Leverage Index
both FUT & OPT. :thinking:


#5

This is not a regular index but rather a strategy index. The idea is to generate twice the return of the index, this is achieved by borrowing money. Here’s the historical performace vs Nifty.

The best way to trade such an index/strategy would have been a 2X leveraged ETF and or an inverse ETF but in India we unfortunately don’t have such ETFs. If you are interested in learning how these leveraged and inverse ETFs work, check this article:

https://www.etf.com/etf-education-center/21044-leveraged-and-inverse-etfs-why-2x-is-not-the-2x-you-think.html


#6

Thanks! @RahulKhanna , It would be gr8 for Retail trader if it available for trading. :slight_smile:


#7

May not be available anytime soon.