List of Derivatives Articles

What do we understand by the term “Hedge”. The word hedge means protection or covering your risk.

Nifty options have emerged as the most liquid trading contract on the NSE. Today, options on the Nifty alone account for more than 80% of the total volumes on the NSE on a daily basis. This volume becomes higher as the expiry for the month approaches. Let us first spend a moment on the idea of a Nifty option.

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

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.

Professional investors who have been investing for numerous years swear by learning about the important trading techniques and strategies If anyone wants to create a robust investment portfolio.

when you hold naked options, you actually hold an option without holding the underlying security or the commodity.

Commodity options are structured like any other option on an index or stock in that the buyer has limited risk and the seller of the option has unlimited risk.

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 the term “Hedge”. The word hedge means protection or covering your risk.

Nifty options have emerged as the most liquid trading contract on the NSE. Today, options on the Nifty alone account for more than 80% of the total volumes on the NSE on a daily basis. This volume becomes higher as the expiry for the month approaches. Let us first spend a moment on the idea of a Nifty option.

Derivatives are standardised financial contracts traded in stock exchanges in a regulated manner.

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

There are numerous professional investors that earn almost all of their profits from Options trading.

The stock markets permit you to buy and sell in equities, futures, options, etc. In all these trades, you take a view on the movement of the security in question and take a position. However, there is also another way of doing this, i.e. betting on the spread.

If the derivatives contract expire on the last Thursday of the month, then what happens after that? That is what is called the derivatives settlement cycle.