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.

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

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

The Indian financial market and its numerous investment instruments come with their risks and rewards. While investors can reap the rewards with the right amount of research and an ideal trading strategy, the risks can seem harder to manage and minimise if

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.

If the derivatives contract expire on the last Thursday of the month, then what happens after that? That is what is called the derivatives settlement cycle.

Calendar spread, as the name suggests is a spread strategy wherein you trade on the gap between two similar contracts rather than betting on the price.

Managing risk is among the most important functions of security markets and one of the biggest risks is time. Time is a risk because prices change constantly

If you are beginning your investment journey or are connected with the financial markets, you must have heard about ‘Derivative Trading’. As it is considered an effective profit-making tool, investors and traders allocate a portion of their capital towards derivatives to ensure they are profitable in almost

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

For financial planners, options could be a great tool to tide over turbulence in markets when things are uncertain, Vatsal Ramaiya says

Option trading is the most popular way to earn short-term gains. While the rewards are lucrative, the risk involved also tends to be higher.

Swap derivatives are an agreement between two parties with the goal to exchange a sequence of cash flows over a certain duration. For more visit India Infoline.

In the options market you often come across terms like the intrinsic value, the time value etc. In addition, you also hear the popular Black & Scholes model.

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