List of Derivatives Articles

Theta options are defined as an options greek that measures the rate at which the option loses its time value as the expiration date draws near.

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.

In the financial markets, leverage is used extensively to increase the potential return on investment. Leverage involves using borrowed capital or securities to fund a financial asset.

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

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.

A Long Call Condor, similar to a long butterfly strategy, is a neutral market-view strategy that offers limited risk and profit.

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.

It often happens that you plan to put some trades in stocks like BHEL, Sun TV or Vodafone Idea in the futures & options market but then your broker tells you that you cannot take fresh positions as the stock is in the F&O Ban List.

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.

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.

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.

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

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