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.

A Bear Call Ladder is a three-legged options strategy that is usually set up for a ‘net credit’ of premium.However, to understand the strategy, the first step is to understand some common jargon related to Options Trading.

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.

A future contract is a right and an obligation to buy or to sell an asset. Remember when we talk of types of futures contracts, there are futures across asset classes.

Derivative trading is one of the most rewarding asset classes for investors who have allocated some capital into equities. Professional investors choose Options contracts within derivatives to ensure they remain liquid and make profits in almost every market situation.

A Long Combo strategy is a well-known Bullish trading strategy. This options strategy is generally used when there is a degree of certainty about the rise of market prices.

In the Indian market, the equity and commodity markets used words like Badla and Undha Badla. These are more popularly known as Contango and Backwardation in market parlance.

The financial lives of every individual has become complex as there are multiple incomes and a number of expenses. Such scenario calls for the need to keep the finances in order so as to avoid challenges in future. Every individual has a unique set of financial goals and challenges, which needs customized personal financial planning.

Minimum margin or maintenance margin is the number of stocks investors must maintain in their margin account.

If you want to trade futures, you start with opening your trading account with a SEBI registered broker like India Infoline Securities.

Derivatives, especially options contracts, have provided tremendous profits to experienced investors who understand the technicality of the derivative contract.