List of Derivatives Articles

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 […]

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.

A European option can be exercised only at the expiration date, whereas the American Option can be exercised at any time on or before the expiration date. The right of the option buyer is a lot more powerful in an American option.

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

Options trading involves various permutations and combinations of Call and Put options.

Investors are comfortable with the trading techniques they know will help them diversify. Once they know they have achieved their profit goals from equities, they move to other asset classes that have the potential to offer significant profits.

The universal truth of the financial market is volatility. Investors who are inexperienced fear volatility as they think it can lower the value of their investments.

The global capital markets are not just a place where directional trades are taken. By default, spread trading meaning is to trade the spread or difference between prices.

Any trading in the capital markets is risky and there is no getting away from it. The best you can do is to smartly and prudently manage this risk.

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

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.

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.

In the stock markets, pricing of any asset class is based on expectations. For example, the future price is the expected spot price and the spot price is nothing by the present value of the expected spot price.

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.

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