List of Derivatives Articles

Professional investors rely on their income from the Indian financial market to make a living. Hence, they need to find investments with the highest profit potential.

An Iron Butterfly Strategy or Iron Fly Strategy is an options trading strategy that combines multiple call and put options to devise a market neutral strategy.

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

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

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.

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.

It often happens that you plan to put some trades in stocks like BHEL, Sun TV or Vodafone Idea in the futures & options market but then your broker tells you that you cannot take fresh positions as the stock is in the F&O Ban List.

The universal truth of the financial market is volatility. Investors who are inexperienced fear volatility as they think it can lower the value of their investments.

The stock market has proven to be the preferred investment avenue for many investors, beginner or experienced.

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.

A bear call spread is a two-legged options trading technique that involves selling a call option with a lower strike price to collect an upfront premium and simultaneously buy a new call option with a higher strike price.

The cost of carry model is based on the premise that the futures price of an asset is the spot price plus the cost of carrying. This cost of carrying is an absolute number but the cost of carrying model presents it in percentage terms.

Currency derivatives are positions that obtain their value from the underlying currency.

Most of us who invest in stocks of a company know what is an IPO (initial public offering). An IPO is the first sale of a stock or share by a company to the public.

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.