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.

A future contract is a right and an obligation to buy or to sell an asset. Remember when we talk of types of futures contracts, there are futures across asset classes.

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

Commodity options are structured like any other option on an index or stock in that the buyer has limited risk and the seller of the option has unlimited risk.

Time plays a crucial role in trading and traders want to buy and sell assets at the ‘right time’ to make more profit.

Derivatives are financial instruments that are aimed at managing risks inherent in any financial investment. The returns that derivatives allow investors to earn are based on the performance of the underlying assets that can be stocks, commodities, currencies etc.

For financial planners, options could be a great tool to tide over turbulence in markets when things are uncertain, Vatsal Ramaiya says

If you have opened the Nifty screen on the NSE website, you will find the link to an Option Chain on the top. Of course, this option chain is also available on your trading terminal but the NSE Nifty option chain is available to everybody on a real time basis on the website of NSE. What exactly is an Option Chain? It is the complete […]

A bull call spread strategy is an Options trading strategy that uses two Call Options with different strike prices to create a range.

The credit spread Options strategy is a simple yet popular trading strategy. It involves buying and selling Call or Put Options with the same underlying asset and expiration date.

In India, the futures and options market has currently become a popular avenue for investors seeking a more significant portion of the Indian stock market. The craze of F&O in India holds a strong grip over the investors. Nevertheless, several traders and investors who are a beginner in the derivative market are primarily uninformed of the process of how it works or the concept of […]