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.

Contango is a common usage in the futures market, especially when it comes to futures on commodities. Here we try to understand contango meaning and contango definition.

A short put is simply the sale of a regular put option. When a put option is sold, the seller is said to short the put option.

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.

A swap is an agreement that allows users to exchange the cash flows or liabilities from two different financial instruments.

Covered call and covered put are two classic examples of a covered strategy where your derivatives position is actually backed by a cash market underlying position.

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.

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.

We know that an option in financial parlance is the right to buy or sell an asset without the obligation. For this right without the obligation, the buyer of the option pays a price which is called the options price or the option premium.

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.

Options calculator is an arithmetic calculating algorithm, which is used to predict and analyze options. It is based on the Black Scholes Model.