List of Derivatives Articles

Any trading in the capital markets is risky and there is no getting away from it. The best you can do is to smartly and prudently manage this risk.

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

A futures contract is a right and obligation to buy or sell a contract at a future date at a price that is determined and agreed upon today.

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

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.

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.

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.

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.

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

While commodity futures may appear to be a modern concept, their roots in India extend far into the past. As early as 1875, there existed a cotton futures exchange. However, futures trading in essential commodities ceased in the 1960s due to concerns about speculative practices and hoarding. It wasn’t until 2002 that futures in commodities made a comeback in India. Read on to learn more […]

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

A short call is an options trading strategy for bearish traders. Essentially, short call traders are bet on a share price fall and benefits from a fall in prices.

For traders who rely on technical analysis for devising trading strategies, price movements and past trends aid in decision making.

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