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Derivatives Market Guide
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IIFL: Difference Between Swap And Option

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. There are many types of derivatives, including forwards, futures, options and swaps. All derivative types have their own distinct qualities and are different from each other. Since you will be putting up a high capital amount to invest in derivatives, it is vital to understand the difference between various derivative contracts. We have already answered the question related to futures vs forwards in our previous blog. This blog will provide knowledge about Options vs Swaps.

IIFL: Difference Between Forward And Futures Contract

Professional investors who have been investing for numerous years swear by learning about the important trading techniques and strategies If anyone wants to create a robust investment portfolio. Among numerous investment instruments and trading techniques that can allow investors to ensure a profitable portfolio, derivatives trading is a key technique. However, investors can use numerous derivative instruments to achieve their portfolio goals.

IIFL: What Are Exchange Traded Derivatives?

If you are beginning your investment journey or are connected with the financial markets, you must have heard about ‘Derivative Trading’. As it is considered an effective profit-making tool, investors and traders allocate a portion of their capital towards derivatives to ensure they are profitable in almost

What Are Over The Counter (OTC) Derivatives?

To have expertise in investing and making profits, you need to be well-versed with all trading terminologies. Among various investment instruments that can

IIFL: What Are Put Options And How It Works?

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

What Is Call Option And How It Works?

When you first begin investing, all the different terms that you are bound to make an acquaintance with will confuse you.

IIFL: What are Swaps?

A derivatives contract is one of the best diversification and trading instruments used by both investors and traders. Based on its structure, it can be broadly divided into

IIFL: What are Forward Contracts and How Do They Work?

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

What Are Future Contracts And How Do They Work?

A legal agreement involving the sale and purchase of a certain commodity, asset, or security at a predetermined price at some point in the future is known as a future contract. To facilitate their trade on the futures exchange

IIFL: What are Options in Derivatives?

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

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