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.

Derivatives, especially options contracts, have provided tremendous profits to experienced investors who understand the technicality of the derivative contract.

A bull call spread strategy is an Options trading strategy that uses two Call Options with different strike prices to create a range.

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.

Currency options are a low upfront cost method of participating in the currency derivatives market. Like currency futures, currency options are also available on pairs like the USDINR, EURINR, GBPINR etc.

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

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

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 […]

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.

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.

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).