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.

Equity is the share of a company that you, as an investor, own. Such equity, in turn, allows you access to the gains of the company.

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).

A bull put spread is an options trading strategy in which the trader buys and sells the same number of put options of different strike prices with the same underlying asset and expiration date.

If you want to trade futures, you start with opening your trading account with a SEBI registered broker like India Infoline Securities.

If you are in the capital market, then volatility is part and parcen of the game. Of course, by volatility we mean that the markets fluctuate and add to your risk.

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.

If you trade in the futures and options space in India, You would have regularly come across the term stating that a particular stock is in the F&O ban period.

The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.

What do we understand by squaring off a futures transaction? To understand how to square off futures position, remember that futures position can be either long or short.

If you have opened the Nifty screen on the NSE website, you will find the link to an Option Chain at the top. Of course, this option chain is also available on your trading terminal, but the NSE Nifty option chain is available to everybody on a real-time basis on the website of NSE. Exactly what is Nifty option chain? It is the complete picture […]