List of Derivatives Articles

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.

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.

Currency derivatives are positions that obtain their value from the underlying currency.

The essential difference between call option and put option arises from the fact that one is an option to buy an underlying asset and the other an option to sell the asset.

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.

In India, the futures and options market has currently become a popular avenue for investors seeking a more significant portion of the Indian stock market. The craze of F&O in India holds a strong grip over the investors. Nevertheless, several traders and investors who are a beginner in the derivative market are primarily uninformed of the process of how it works or the concept of […]

Commodity options are structured like any other option on an index or stock in that the buyer has limited risk and the seller of the option has unlimited risk.

In financial markets we all understand volatility as something very unstable and very bad.

To understand options, one needs to understand options features and option contract features.These options features and option contract features refer to the basic DNA of an option contract.

Professional investors understand every factor that can affect the Indian financial market.

Iron butterfly strategy aims to create a market-neutral strategy by combing call and put options with identical expiration dates which consolidate at a middle strike price.

Almost all investors start their investing journey through the stock market. The idea is simple, you buy the shares at a low price and sell them when the prices are high, thereby making a profit.

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

The credit spread Options strategy is a simple yet popular trading strategy. It involves buying and selling Call or Put Options with the same underlying asset and expiration date.

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