List of Derivatives Articles

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.

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.

In the financial markets, leverage is used extensively to increase the potential return on investment. Leverage involves using borrowed capital or securities to fund a financial asset.

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

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.

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.

If you’re planning to become a successful trader, it’s important to learn how to spot sideways markets and find ways to make the most of them.

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

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

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.

Shout Options are among the league of more complex aspects of stock trading. But, learning how to use them can help you take your trading strategy to the next level. Shout Options are one of the many types of derivatives contracts available to traders, and they are widely misunderstood because there are several different ways to use them.

The Indian financial market is full of numerous investment opportunities that can offer higher returns with low-risk exposure.

A Short Straddle is a complex Options strategy that consists of selling both a Call option and a Put option, with the same strike price and expiration date.

The cost of carry model is based on the premise that the futures price of an asset is the spot price plus the cost of carrying. This cost of carrying is an absolute number but the cost of carrying model presents it in percentage terms.

Consider you have a barrel of wheat that you want to sell three months from now, but you fear that the prices might fall in the future.