List of Derivatives Articles

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.

An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy that combines multiple call and put options to devise a market neutral strategy.

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

Investors choose derivative trading for its high potential of diversification and limiting their exposure to the fall of a specific asset class.

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.

For financial planners, options could be a great tool to tide over turbulence in markets when things are uncertain, Vatsal Ramaiya says

The put call ratio actually tries to make sense of the loads of puts and calls of various strikes that get traded and make sense of what these trends are really throwing up.

Minimum margin or maintenance margin is the number of stocks investors must maintain in their margin account.

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.

Traders typically engage in investments with the expectation of a rising market, and occasionally, they make some investments hoping for a downward price movement. However, it’s common for prices to remain relatively stable. Wouldn’t it be appealing if you could generate profits even when the markets are not showing significant movement? Well, you can achieve this through options trading, particularly by employing the strategy known […]

In the options market you often come across terms like the intrinsic value, the time value etc. In addition, you also hear the popular Black & Scholes model.

Derivatives are financial instruments that are aimed at managing risks inherent in any financial investment. The returns that derivatives allow investors to earn are based on the performance of the underlying assets that can be stocks, commodities, currencies etc.

In the stock markets, pricing of any asset class is based on expectations. For example, the future price is the expected spot price and the spot price is nothing by the present value of the expected spot price.

A legal agreement involving the sale and purchase of a certain commodity, asset, or security at a predetermined price at some point in the future is known as a future contract. To facilitate their trade on the futures exchange

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.