List of Derivatives Articles

Futures and Options represent Derivatives of the stock market. These Derivatives are the financial instruments deriving their values from an underlying such as currency, gold, or the stocks of a company.

To have expertise in investing and making profits, you need to be well-versed with all trading terminologies. Among various investment instruments that can allow you to earn hefty returns, Over-the-Counter or OTC derivatives are one of them.

A European option can be exercised only at the expiration date, whereas the American Option can be exercised at any time on or before the expiration date. The right of the option buyer is a lot more powerful in an American option.

Whether you trade in stocks, commodities or any other financial instrument, it can take place across a number of different platforms and in a number of different ways. However, some commonly employed trading methods have

Max Pain is the financial situation that is defined by the strike price of most live options contracts.

when you hold naked options, you actually hold an option without holding the underlying security or the commodity.

Investors choose derivative trading for its high potential of diversification and limiting their exposure to the fall of a specific asset class.

Professional investors rely on their income from the Indian financial market to make a living. Hence, they need to find investments with the highest profit potential.

Professional investors who have been investing for numerous years swear by learning about the important trading techniques and strategies If anyone wants to create a robust investment portfolio.

One of the most important aspects of an options contract is the strike price or the exercise price. This is the price at which the buyer agrees to buy the stock and the seller agrees to sell the stock.

Covered call and covered put are two classic examples of a covered strategy where your derivatives position is actually backed by a cash market underlying position.

We know that an option in financial parlance is the right to buy or sell an asset without the obligation. For this right without the obligation, the buyer of the option pays a price which is called the options price or the option premium.

One of the popular confusions for traders is margin vs futures. Are they one and the same. To understand the margin vs futures debate, remember that margin trading is normally applicable to cash markets while futures trading pertains to the futures or F&O market.

If you have been trading in the commodity markets or the forex markets, you would be quite familiar with the concept of spot rates and forward rates.

Almost every investor in the Indian financial market is different in the way they use investing strategies.