List of Derivatives Articles

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.

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.

The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.

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.

As you begin investing your funds to generate higher returns and derive profitability, it is best to know the options and instruments available for investing. Market knowledge is usually

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.

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.

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.

The difference between underlying securities current spot price and strike price represents the profit/loss that the trader makes upon sale or exercise of the option.

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.

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

OTC options or over the counter options essentially represents options that are privately entered into and are not traded in a standard form in any stock exchange.

A common belief in the Indian financial market is: the more complex the strategy, the higher is the potential for profits. The same goes with Options trading and its numerous complex strategies.

One of the most common term you get to year in the derivatives market is the term “Underlying Asset”.

A popular adage is, “you cannot time the markets”. However, options provide a way for investors to decide whether to buy or sell the underlying in a given timeframe. Traders use them to hedge their positions and protect against downside risk (losses) or enhance their gains (profits).