List of Derivatives Articles

The credit spread Options strategy is a simple yet popular trading strategy. It involves buying and selling Call or Put Options with the same underlying asset and expiration date.

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.

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.

The essential difference between call option and put option arises from the fact that one is an option to buy an underlying asset and the other an option to sell the asset.

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.

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

A bear call spread is a two-legged options trading technique that involves selling a call option with a lower strike price to collect an upfront premium and simultaneously buy a new call option with a higher strike price.

One of the most common term you get to year in the derivatives market is the term “Underlying Asset”.

To understand settlement of options you need to break up the buy side and the sell side of the option distinctly.

Derivative trading is one of the most rewarding asset classes for investors who have allocated some capital into equities. Professional investors choose Options contracts within derivatives to ensure they remain liquid and make profits in almost every market situation.

Just as you understand futures trading, it is also important to understand the future contract settlement and especially the future contract settlement process.

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.

It often happens that you plan to put some trades in stocks like BHEL, Sun TV or Vodafone Idea in the futures & options market but then your broker tells you that you cannot take fresh positions as the stock is in the F&O Ban List.

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.

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