List of Derivatives Articles

The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.

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.

Currency derivatives are positions that obtain their value from the underlying currency.

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.

Futures and options are known as derivative products, which mean that they derive their value from an underlying commodity or asset. However, futures and options differ in fundamental ways from each other.

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

Traders typically engage in investments with the expectation of a rising market, and occasionally, they make some investments hoping for a downward price movement. However, it’s common for prices to remain relatively stable. Wouldn’t it be appealing if you could generate profits even when the markets are not showing significant movement? Well, you can achieve this through options trading, particularly by employing the strategy known […]

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

The bear put spread strategy or bear put spread is when an investor sells a put option while simultaneously buying another put option with the same underlying asset and the expiration date.

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

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.

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.

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.

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

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.