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.

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

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

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.

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.

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.

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

A short put is simply the sale of a regular put option. When a put option is sold, the seller is said to short the put option.

A vertical spread also called a credit spread, involves buying and selling Options of the same class (Call or Put) but different strike prices. Vertical spreads can be bullish or bearish

A bull call spread strategy is an Options trading strategy that uses two Call Options with different strike prices to create a range.

Generally, new investors tend to put their money in stocks as they are one of the most sought after and straightforward asset classes.

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

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.

Consider you have a barrel of wheat that you want to sell three months from now, but you fear that the prices might fall in the future.

To understand options, one needs to understand options features and option contract features.These options features and option contract features refer to the basic DNA of an option contract.