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 think about the basic idea behind investing, it seems to be fairly simple: you buy securities at a lower price and sell them when the price is high. However, all prospective investors need to realise and understand that

If the derivatives contract expire on the last Thursday of the month, then what happens after that? That is what is called the derivatives settlement cycle.

The Indian financial market and its numerous investment instruments come with their risks and rewards. While investors can reap the rewards with the right amount of research and an ideal trading strategy, the risks can seem harder to manage and minimise if

To understand settlement of options you need to break up the buy side and the sell side of the option distinctly.

Currency options are a low upfront cost method of participating in the currency derivatives market. Like currency futures, currency options are also available on pairs like the USDINR, EURINR, GBPINR etc.

What do we understand by squaring off a futures transaction? To understand how to square off futures position, remember that futures position can be either long or short.

A basic principle in the stock market is the occurrence of both the market trends (Bear and Bull) at regular intervals. In the case of a bear cycle, the prices of the securities collapse, forcing investors to lose a chunk of their capital.

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

Investors are comfortable with the trading techniques they know will help them diversify. Once they know they have achieved their profit goals from equities, they move to other asset classes that have the potential to offer significant profits.

As you begin investing your funds to generate higher returns and derive profitability, it is best to know the options and instruments available for investing. Market knowledge is usually