List of Derivatives Articles

Theta options are defined as an options greek that measures the rate at which the option loses its time value as the expiration date draws near.

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.

In the financial markets, leverage is used extensively to increase the potential return on investment. Leverage involves using borrowed capital or securities to fund a financial asset.

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

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.

Iron butterfly strategy aims to create a market-neutral strategy by combing call and put options with identical expiration dates which consolidate at a middle strike price.

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

In financial markets we all understand volatility as something very unstable and very bad.

Time plays a crucial role in trading and traders want to buy and sell assets at the ‘right time’ to make more profit.

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

If you are beginning your investment journey or are connected with the financial markets, you must have heard about ‘Derivative Trading’. As it is considered an effective profit-making tool, investors and traders allocate a portion of their capital towards derivatives to ensure they are profitable in almost

What do we understand by squaring off a futures transaction? To understand how to square off futures position, remember that futures position can be either long or short.

An index is a benchmark like the Nifty or the Sensex. Typically, indices can be generic benchmarks like Nifty and Sensex. Alternatively, indices can also be thematic benchmarks like the Bank Nifty, Nifty IT etc.

Futures and Options represent Derivatives of the stock market. These Derivatives are the financial instruments deriving their values from an underlying such as currency, gold, or the stocks of a company.

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.