List of Derivatives Articles

If you have opened the Nifty screen on the NSE website, you will find the link to an Option Chain at 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. Exactly what is Nifty option chain? It is the complete picture […]

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.

A European option can be exercised only at the expiration date, whereas the American Option can be exercised at any time on or before the expiration date. The right of the option buyer is a lot more powerful in an American option.

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

Options trading involves various permutations and combinations of Call and Put options.

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.

Options strategies are basically combinations. We shall look at various types of options strategies along the way and also now to apply such option trading strategies along the way.

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

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 you hold naked options, you actually hold an option without holding the underlying security or the commodity.

Investing is one of the best ways to utilise your disposable income. However, it is always best to go with investment tools that offer high security and guaranteed returns when you first start investing.

Calendar spread, as the name suggests is a spread strategy wherein you trade on the gap between two similar contracts rather than betting on the price.

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.

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

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