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.

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.

Investors are comfortable with the trading techniques they know will help them diversify. Once they know they have achieved their profit goals from equities, they move to other asset classes that have the potential to offer significant profits.

Contango is a common usage in the futures market, especially when it comes to futures on commodities. Here we try to understand contango meaning and contango definition.

When you first begin investing, you realise that there are numerous terms you are required to learn to mitigate losses and ensure you are profitable. Although the wide range of financial instruments available for investing in the Indian market provides a plethora of profit-making opportunities, you can end up making losses if you are not well versed with each of them.

There are numerous professional investors that earn almost all of their profits from Options trading.

To understand settlement of options you need to break up the buy side and the sell side of the option distinctly.

Max Pain is the financial situation that is defined by the strike price of most live options contracts.

Generally, new investors tend to put their money in stocks as they are one of the most sought after and straightforward asset classes.

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.

If you are a trader in the F&O market, you must be familiar with concepts like European Options and American Options.Here we look at what are American options and we also look at the European Option definition.