List of Derivatives Articles

An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy that combines multiple call and put options to devise a market neutral strategy.

Professional investors rely on their income from the Indian financial market to make a living. Hence, they need to find investments with the highest profit potential.

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.

The financial lives of every individual has become complex as there are multiple incomes and a number of expenses. Such scenario calls for the need to keep the finances in order so as to avoid challenges in future. Every individual has a unique set of financial goals and challenges, which needs customized personal financial planning.

As you begin investing your funds to generate higher returns and derive profitability, it is best to know the options and instruments available for investing. Market knowledge is usually

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.

Time plays a crucial role in trading and traders want to buy and sell assets at the ‘right time’ to make more profit.

A Long Call Condor, similar to a long butterfly strategy, is a neutral market-view strategy that offers limited risk and profit.

In the stock markets, pricing of any asset class is based on expectations. For example, the future price is the expected spot price and the spot price is nothing by the present value of the expected spot price.

The Indian financial market is termed the ‘Market for Everyone’, as it includes financial instruments that can cater to the financial needs of every type of investor.

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

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.

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

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.

A futures is a contract to buy or sell an underlying asset at a future price, called the exercise price, at a future date, called the expiry date.