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.

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.

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.

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.

A Long Combo strategy is a well-known Bullish trading strategy. This options strategy is generally used when there is a degree of certainty about the rise of market prices.

It often happens that you plan to put some trades in stocks like BHEL, Sun TV or Vodafone Idea in the futures & options market but then your broker tells you that you cannot take fresh positions as the stock is in the F&O Ban List.

If you trade in the futures and options space in India, You would have regularly come across the term stating that a particular stock is in the F&O ban period.