List of Derivatives Articles

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Derivatives Market Guide

What Is Spread Betting And How Does It Work?

The stock markets permit you to buy and sell in equities, futures, options, etc. In all these trades, you take a view on the movement of the security in question and take a position. However, there is also another way of doing this, i.e. betting on the spread.

What Are The Major Functions Of Derivatives Market In An Economy?

A derivative is a financial instrument that derives its value from an underlying asset. The underlying asset can be equity, currency, commodities, or interest rate.

What Is Option Calculator? How To Use Option Calculator?

Options calculator is an arithmetic calculating algorithm, which is used to predict and analyze options. It is based on the Black Scholes Model.

What Are American And European Options?

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.

What Is An IPO Green Shoe Option?

Most of us who invest in stocks of a company know what is an IPO (initial public offering). An IPO is the first sale of a stock or share by a company to the public.

What is Optionable Stock?

Equity investing is a great way to generate returns. However, there can be other rationales for investing in securities like leveraging a position or hedging risk.

What is the Down-and-Out Option?

Derivatives, especially options contracts, have provided tremendous profits to experienced investors who understand the technicality of the derivative contract.

What is Chooser Option?

Consider you have a barrel of wheat that you want to sell three months from now, but you fear that the prices might fall in the future.

What is an Up and Out Option?

A popular adage is, “you cannot time the markets”. However, options provide a way for investors to decide whether to buy or sell the underlying in a given timeframe. Traders use them to hedge their positions and protect against downside risk (losses) or enhance their gains (profits).

What is an Outright Option?

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