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.

Almost all investors start their investing journey through the stock market. The idea is simple, you buy the shares at a low price and sell them when the prices are high, thereby making a profit.

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

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

If you are a trader in the F&O market, you must be familiar with concepts like European Options and American Options.Here we look at what are American options and we also look at the European Option definition.

A futures is a contract to buy or sell an underlying asset at a future price, called the exercise price, at a future date, called the expiry date.

When investing in the Indian financial market, one thing to be certain: Risk. Market risk is the most common and universal within every asset class in the financial market.

When you first begin investing, you realise that there are numerous terms you are required to learn to mitigate losses and ensure you are profitable. Although the wide range of financial instruments available for investing in the Indian market provides a plethora of profit-making opportunities, you can end up making losses if you are not well versed with each of them.

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 Indian stock market is as simple as it gets: you buy stocks at a low price and sell them when the price is higher and make profits based on the price difference.

For traders who rely on technical analysis for devising trading strategies, price movements and past trends aid in decision making.