List of Derivatives Articles

Any trading in the capital markets is risky and there is no getting away from it. The best you can do is to smartly and prudently manage this risk.

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

A futures contract is a right and obligation to buy or sell a contract at a future date at a price that is determined and agreed upon today.

Max Pain is the financial situation that is defined by the strike price of most live options contracts.

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 common belief in the Indian financial market is: the more complex the strategy, the higher is the potential for profits. The same goes with Options trading and its numerous complex strategies.

when you hold naked options, you actually hold an option without holding the underlying security or the commodity.

Share derivatives priced between Rs201 to Rs400 would have a lot of 1,000 units; between Rs101 and Rs200 in lots of 2,000 units; Rs51 to Rs100 at 4,000 units and Rs25 to Rs50 in lots of 8,000.

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.

Are you a trader or investor who has been actively engaged in the commodity markets? If yes, you need to get an insight into the futures of crude oil trading. Crude oil is considered one of the most significant commodities to trade in the country due to its constant worldwide demands. The demand for crude oil globally makes it a top-notch commodity in India and […]

Commodity options are structured like any other option on an index or stock in that the buyer has limited risk and the seller of the option has unlimited risk.

The Indian stock market is as simple as it gets: you buy stocks at a low price and sell them when the price is higher and make profits based on the price difference.

Options trading is one of the most sought-after asset classes that traders and investors leverage to make low risk and steady profits.

A popular adage is, “you cannot time the markets”. However, options provide a way for investors to decide whether to buy or sell the underlying in a given timeframe. Traders use them to hedge their positions and protect against downside risk (losses) or enhance their gains (profits).

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