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.

Professional investors understand every factor that can affect the Indian financial market.

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.

The Indian financial market is full of numerous investment opportunities that can offer higher returns with low-risk exposure.

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

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.

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.

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

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.

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

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.