List of Derivatives Articles

Options strategy: Get insurance for your portfolio!

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

SEBI sets new lot sizes for stocks derivatives

Share derivatives priced between Rs201 to Rs400 would have a lot of 1,000 units; between Rs101 and Rs200 in lots of 2,000 units; Rs51 to Rs100 at 4,000 units and Rs25 to Rs50 in lots of 8,000.

What is F&O?

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.

Options: What is ATM, ITM, OTM?

The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.

A complete guide to understanding Nifty Option Chain

How Do You Calculate Profit And Loss In Nifty Options?

Nifty options have emerged as the most liquid trading contract on the NSE. Today, options on the Nifty alone account for more than 80% of the total volumes on the NSE on a daily basis. This volume becomes higher as the expiry for the month approaches. Let us first spend a moment on the idea of a Nifty option.

10 Basic Principles Of Personal Finance

The financial lives of every individual has become complex as there are multiple incomes and a number of expenses. Such scenario calls for the need to keep the finances in order so as to avoid challenges in future. Every individual has a unique set of financial goals and challenges, which needs customized personal financial planning.

How Are Options Settled

To understand settlement of options you need to break up the buy side and the sell side of the option distinctly. When a person buys a call or put option, the maximum loss is the premium paid. Hence the settlement of options on buy side begins with premium settlement and then you are done till the position is closed or expires. However, options settlement for sell side is more complex.