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.

Derivatives are standardised financial contracts traded in stock exchanges in a regulated manner.

A bullish options strategy can be an effective way to increase your investment profits while reducing the amount of risk at any given time.

A futures contract is a right and obligation to buy or sell a contract at a future date at a price that is determined and agreed upon today.

One of the most common term you get to year in the derivatives market is the term “Underlying Asset”.

During the last week of every month, we tend to hear the words like derivatives settlement and derivatives expiry on all the business and news channels.

The bear put spread strategy or bear put spread is when an investor sells a put option while simultaneously buying another put option with the same underlying asset and the expiration date.

One of the unique features of exchange traded futures in India is that they are standardized. One of the methods of standardizing futures and options contracts is through the prescription of minimum lot sizes.

Futures and options are not just about trading and hedging but also about simple and hybrid strategies Futures and options strategies are at the core of derivatives and there are a variety of F&O trading strategies that one can safely and effectively apply.

Swaptions (Swap + options) is a derivative financial instrument with a swap as the underlying. One party called the writer or seller of the option gives another party called the holder or buyer of the option the right to exchange interest rates.

Investing is one of the best ways to utilise your disposable income. However, it is always best to go with investment tools that offer high security and guaranteed returns when you first start investing.