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.

Traders typically engage in investments with the expectation of a rising market, and occasionally, they make some investments hoping for a downward price movement. However, it’s common for prices to remain relatively stable. Wouldn’t it be appealing if you could generate profits even when the markets are not showing significant movement? Well, you can achieve this through options trading, particularly by employing the strategy known […]

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

A vertical spread also called a credit spread, involves buying and selling Options of the same class (Call or Put) but different strike prices. Vertical spreads can be bullish or bearish

A Bear Call Ladder is a three-legged options strategy that is usually set up for a ‘net credit’ of premium.However, to understand the strategy, the first step is to understand some common jargon related to Options Trading.

Generally, new investors tend to put their money in stocks as they are one of the most sought after and straightforward asset classes.

Shout Options are among the league of more complex aspects of stock trading. But, learning how to use them can help you take your trading strategy to the next level. Shout Options are one of the many types of derivatives contracts available to traders, and they are widely misunderstood because there are several different ways to use them.

The cost of carry model is based on the premise that the futures price of an asset is the spot price plus the cost of carrying. This cost of carrying is an absolute number but the cost of carrying model presents it in percentage terms.

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

We all pay option premium when we buy options and receive option premium when we sell options. Have you wondered about the option premium meaning and its significance. Why do options command premium, what exactly this premium and who determines this premium amount?

If you want to trade futures, you start with opening your trading account with a SEBI registered broker like India Infoline Securities.