List of Derivatives Articles

Stock market indicators are essentially quantitative tools applied by traders and investors to interpret financial data. The broad intent is to forecast stock market movements and make profits out of the same.

Options are not only liquid but they are many times larger than the cash market and the futures market in terms of daily volumes.

Index Options are derivative instrument, which means their value is derived from the movements in the underlying index.

If you are an investor looking for short-term financial instruments, Options is a great option. It is a derivative contract that gives the owner the right to buy or sell securities at an agreed-upon price within a certain period.

When talking to an investor, you get to know that they lost all of their capital while trading. Thinking that they too would lose their capital, they pass on their idea of investing, thereby losing on huge wealth multiplication and profits.

Max Pain is the financial situation that is defined by the strike price of most live options contracts.

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

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.

Basis in derivatives is the difference between the spot price (current price) and the strike price (predefined price) of the futures contract.

A short call is an options trading strategy for bearish traders. Essentially, short call traders are bet on a share price fall and benefits from a fall in prices.

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).

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

If you’re planning to become a successful trader, it’s important to learn how to spot sideways markets and find ways to make the most of them.

Calendar spread, as the name suggests is a spread strategy wherein you trade on the gap between two similar contracts rather than betting on the price.

Rollover may sound like a complex and high flying esoteric word but in reality it is quite simple. You must have heard the word rollover quite often concerning futures. Traders often refer to rollover in the stock market as long rollover or short rollover.