List of Derivatives Articles

Professional investors rely on their income from the Indian financial market to make a living. Hence, they need to find investments with the highest profit potential.

An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy that combines multiple call and put options to devise a market neutral strategy.

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

Investors choose derivative trading for its high potential of diversification and limiting their exposure to the fall of a specific asset class.

A Short Straddle is a complex Options strategy that consists of selling both a Call option and a Put option, with the same strike price and expiration date.

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.

One of the most popular and widely used words in the lexicon of F&O trading is open interest. As the name suggests, open interest represents the open futures and options positions in the market that are yet to be closed out or exercised or expired.

Iron butterfly strategy aims to create a market-neutral strategy by combing call and put options with identical expiration dates which consolidate at a middle strike price.

A ratio spread is a neutral options trading strategy in which an options trader holds an unequal number of long (purchased) and short (written) options contracts.

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

Futures and options are known as derivative products, which mean that they derive their value from an underlying commodity or asset. However, futures and options differ in fundamental ways from each other.

The bear put spread strategy or bear put spread is when an investor sells a put option while simultaneously buying another put option with the same underlying asset and the expiration date.

Futures and options are not just about trading and hedging but also about simple and hybrid strategies Futures and options strategies are at the core of derivatives and there are a variety of F&O trading strategies that one can safely and effectively apply.

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.

One of the unique features of exchange traded futures in India is that they are standardized. One of the methods of standardizing futures and options contracts is through the prescription of minimum lot sizes.