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.

To have expertise in investing and making profits, you need to be well-versed with all trading terminologies. Among various investment instruments that can allow you to earn hefty returns, Over-the-Counter or OTC derivatives are one of them.

When investing in the Indian financial market, one thing to be certain: Risk. Market risk is the most common and universal within every asset class in the financial market.

What do we understand by the term “Hedge”. The word hedge means protection or covering your risk.

If you are a trader in the F&O market, you must be familiar with concepts like European Options and American Options.Here we look at what are American options and we also look at the European Option definition.

Futures and Options represent Derivatives of the stock market. These Derivatives are the financial instruments deriving their values from an underlying such as currency, gold, or the stocks of a company.

A vertical spread also called a credit spread, involves buying and selling Options of the same class (Call or Put) but different strike prices. Vertical spreads can be bullish or bearish

Basis in derivatives is the difference between the spot price (current price) and the strike price (predefined price) of the futures contract.

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.

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.

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