List of Derivatives Articles

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.

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.

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.

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.

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.

Professional investors who have been investing for numerous years swear by learning about the important trading techniques and strategies If anyone wants to create a robust investment portfolio.

A short put is simply the sale of a regular put option. When a put option is sold, the seller is said to short the put option.

Whether you trade in stocks, commodities or any other financial instrument, it can take place across a number of different platforms and in a number of different ways. However, some commonly employed trading methods have

The global capital markets are not just a place where directional trades are taken. By default, spread trading meaning is to trade the spread or difference between prices.

During the last week of every month, we tend to hear the words like derivatives settlement and derivatives expiry on all the business and news channels.

If you have opened the Nifty screen on the NSE website, you will find the link to an Option Chain on the top. Of course, this option chain is also available on your trading terminal but the NSE Nifty option chain is available to everybody on a real time basis on the website of NSE. What exactly is an Option Chain? It is the complete […]

An option is a right to buy without the obligation to buy or a right to sell without the obligation to sell. The former is the buyer of a call option and the latter is the buyer of a put option.

A bull put spread is an options trading strategy in which the trader buys and sells the same number of put options of different strike prices with the same underlying asset and expiration date.

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

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.