List of Derivatives Articles

Stock market indicators are essentially quantitative tools applied by traders and investors to interpret financial data. The broad intent is to forecast stock market movements and make profits out of the same.

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

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.

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

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.

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.

One of the unique features of exchange traded futures in India is that they are standardized. One of the methods of standardizing futures and options contracts is through the prescription of minimum lot sizes.

There are numerous professional investors that earn almost all of their profits from Options trading.

For traders who rely on technical analysis for devising trading strategies, price movements and past trends aid in decision making.

Theta options are defined as an options greek that measures the rate at which the option loses its time value as the expiration date draws near.

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

In any business, you pay margin money to show your commitment and this gets adjusted to the final price.

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.

Options trading is a lucrative yet risky investment avenue. The risk, as well as rewards involved in Options, tend to be higher.

Equity is the share of a company that you, as an investor, own. Such equity, in turn, allows you access to the gains of the company.