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.

While commodity futures may appear to be a modern concept, their roots in India extend far into the past. As early as 1875, there existed a cotton futures exchange. However, futures trading in essential commodities ceased in the 1960s due to concerns about speculative practices and hoarding. It wasn’t until 2002 that futures in commodities made a comeback in India. Read on to learn more […]

If you are an investor looking for short-term financial instruments, Options is a great option. It is a derivative contract that gives the owner the right to buy or sell securities at an agreed-upon price within a certain period.

Equity is the share of a company that you, as an investor, own. Such equity, in turn, allows you access to the gains of the company.

A short put is simply the sale of a regular put option. When a put option is sold, the seller is said to short the put option.

Futures and options are known as derivative products, which mean that they derive their value from an underlying commodity or asset. However, futures and options differ in fundamental ways from each other.

In the Indian market, the equity and commodity markets used words like Badla and Undha Badla. These are more popularly known as Contango and Backwardation in market parlance.

Swap derivatives are an agreement between two parties with the goal to exchange a sequence of cash flows over a certain duration. For more visit India Infoline.

Calendar spread, as the name suggests is a spread strategy wherein you trade on the gap between two similar contracts rather than betting on the price.

Managing risk is among the most important functions of security markets and one of the biggest risks is time. Time is a risk because prices change constantly

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