List of Derivatives Articles

Stock market indicators are essentially quantitative tools applied by traders and investors to interpret financial data. The broad intent is to forecast stock market movements and make profits out of the same.

Options are not only liquid but they are many times larger than the cash market and the futures market in terms of daily volumes.

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

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.

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.

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.

Nifty options have emerged as the most liquid trading contract on the NSE. Today, options on the Nifty alone account for more than 80% of the total volumes on the NSE on a daily basis. This volume becomes higher as the expiry for the month approaches. Let us first spend a moment on the idea of a Nifty option.

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.

Futures and Options represent Derivatives of the stock market. These Derivatives are the financial instruments deriving their values from an underlying such as currency, gold, or the stocks of a company.

Have you ever wondered why there are different stock lot sizes in futures and options trading. One of the unique features of exchange-traded futures in India is that they are standardized.

If you have been trading in the commodity markets or the forex markets, you would be quite familiar with the concept of spot rates and forward rates.

It is important to understand the difference between forward and future contracts, especially for traders who are involved in the buying and selling of assets.

Almost every investor in the Indian financial market is different in the way they use investing strategies.

One of the most important aspects of an options contract is the strike price or the exercise price. This is the price at which the buyer agrees to buy the stock and the seller agrees to sell the stock.

One of the popular confusions for traders is margin vs futures. Are they one and the same. To understand the margin vs futures debate, remember that margin trading is normally applicable to cash markets while futures trading pertains to the futures or F&O market.