Derivatives Trading Articles

Get comprehensive information related to Derivatives Trading. Read and understand the basics of derivatives market, trading in futures and options and much more before you start trading in Derivatives.

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Derivatives Trading Strategies

Derivatives trading occurs through futures or options contracts between two parties at  stock exchanges like NSE and BSE and...Read More

Difference Between Options and Futures

Options and Futures are both recognised as financial instruments used by distinguishing investors to profit upon or even...Read More

Hedging Strategy

In finance, hedging is termed as securing investments. Every investor who wants to use hedging must ensure having the necessary...Read More

Options Strategies

Options trading is meant to provide a process that defines the selling and buying of options by a trader. The options trading...Read More

What are Derivatives?

Expert investors often juggle between cash and derivatives markets to maximise their returns from capital market investments....Read More

What is Futures Trading?

Futures trading is a part of future and option trading in the derivatives segment of the stock market. Investors trading in futures...Read More

What is Derivative Trading?

If you want to trade in the capital market, you can take two routes. While the first is the cash market route, the second is the...Read More

What is Options Trading?

Options trading has emerged as a classy and remunerative alternative to the cash segment in the stock market. Be it options buying...Read More

Futures Contract: Meaning, Definition, Pros & Cons

Generally, when predicting the gross fluctuations that might take place in the market, traders tend to stabilise and protect their...Read More

What Are Exchange Traded Derivatives?

Derivatives are of two types - over-the-counter and standardised contracts. While over-the-counter derivative transactions take place...Read More

Stocks vs Futures

The difference between stock and futures can be quite difficult to comprehend...Read More

Stock Index Futures

Futures are derivatives that allow investors to speculate on the prices of underlying assets...Read More

What is Meant by Futures in Trading?

Futures trading can be quite cumbersome due to the different types of futures available...Read More

How to Trade in Futures and Options?

Trading in futures and options can be quite a confusing and tedious task. Here, we'll tell...Read More

Difference Between Forward and Futures Contract

Both futures and forwards enable investors to reap rich dividends. Read on to know more...Read More

What are Forward Contracts?

Forward contracts refer to over the counter agreements between two parties. Read on to learn...Read More

Derivatives Advantages & Disadvantages

Derivatives trading is fast catching pace with Indian investors. Know the advantages and disadvantages...Read More

What are Currency Derivatives?

Informed investors use currency derivatives for investment and hedging...Read More

Difference Between Equity and Derivatives

Equity refers to the capital sought by new businesses from the public. Derivatives derive...Read More

Derivatives Trading in India

Derivates trading in India is quite popular among investors. Read on to know derivatives and their types...Read More

What is Margin Funding?

Margin funding or margin trade funding is a special type of collateral-backed loan provided by Indian stockbrokers. To get the facility...Read More

What is Settlement Procedure?

Investments are made to yield profit or generate cash flows. There are various kinds of investments depending on the risk one...Read More

What is Option Volatility & Pricing Strategies

The price of an option is nothing but an enigma. There are many variables or factors. Some of these factors have known values...Read More

What is Forward Market?

The forward exchange market allows for the customisation of derivatives contracts and is preferred...Read More

What is an Index Call? Overview of Index Call Options

The call options give the holder the right to buy a stock at a particular price until a specific date. The price that has been set is known as the...Read More

What are Swaps Derivatives?

Informed investors use swaps derivatives as a hedging instrument. This article describes swaps derivatives and their types...Read More

What is Bermuda Option?

The Bermuda Option is one of the most common terms that Forex traders use, and it is one of the toughest to comprehend...Read More

What are the Various Types of Derivatives?

Derivatives is an excellent investment and trading instrument for the courageous. The derivatives market presents fascinating...Read More

What are Bullish Option Strategies?

Bullish options strategies are techniques that work specifically in the bull market. Investors apply bullish options strategies...Read More

The Simplest Guide to Futures Pricing Formula

A futures contract is a standardised legal agreement between a seller and a buyer. A futures contract makes it binding for the seller...Read More

Call Options Basics and How it Works?

Options trading opens up tremendous opportunities for people acquainted with this investment instrument. If you are...Read More

What is Margin Money?

When your stockbroker gives you the additional money, it is known as margin money. You can use the margin money to take long...Read More

Put–Call Ratio Explained: What is PCR, Why It Matters & How You Can Use It

Derivatives traders use multiple indicators and tools to make sense of the market movement. While some analyse the open interest...Read More

What are Options?

Options contracts derive their value based on the underlying asset, which can be any tradable instrument such as stocks,...Read More

Options Trading Strategies

Options trading strategies combine various tactics such as the current market trend, underlying asset volatility, risk metrics ...Read More

Types of Options

Two types of options provide various advantages: Call Options and Put Options.... Read More

How to Trade Options?

Investors consider derivative trading to increase market efficiency. In this article, you will learn how to trade options in detail...Read More

Options Trading Tips

One of the common derivatives trading that offers high returns with limited downside risk is options trading....Read More

How to Choose Stocks for Option Trading?

An investor must understand the below characteristics of option contracts to select stock for trading ....Read More

What is a Put Option?

To understand the meaning of put options, let's discuss some basic terms associated with a put contract....Read More

What Is a Call Option?

Call options are “in the money” if the stock price is above the strike price at expiration. Call holders may exercise their options by ...Read More

Strike Price in Options: Meaning, Role & Importance in Options

The strike price is the predetermined price at which a call or put option contract can be traded on or before the pre-decided...Read More

Open Interest in Options

Options are a stock market tool determined by underlying securities of the stock market. An options contract allows traders to buy or sell the ...Read More

What is Implied Volatility?

Implied volatility is a metric used to predict fluctuations in the prices of securities. It is a forecast made by the market based on predictive factors ... Read More

What are Futures and Options?

People love variety. For food and finances, the more options, the better. With the rise in technology, multiple options are available to grow...Read More

What Are Call and Put Options? Meaning, Examples & Expiry Explained

Call and put options are a typical derivative or contract that provides rights to the buyer. However, there’s...Read More

What Are Stock Options: A Complete Guide 2023

Having a proper idea of ‘what are stock options,’ how it works, and the advantages of options stocks....Read More

Options Selling

Each financial transaction requires two parties- the buyer and the seller. Without the absence...Read More

Iron Butterfly Options Strategy: How It Works and When to Use It

The world of financial markets is one of the most dynamic and evolving industries, the impacts of which none can escape...Read More

Best Options Trading Courses: Things To Know About

In India, the trend of option trading course has become popular for a wide variety of reasons. For instance,...Read More

Options Trading for Beginners: A Comprehensive Guide For You

Options are known for being derivatives contracts. Using options, buyers may purchase or make a sale...Read More

Options And Futures: Understand The Functioning, Types and Other Factors

The future option meaning refers to a futures contract, which comes at a pre-decided price on a fixed date. Moreover, if someone asks what the future option is?...Read More

Options Hedging Strategy

Options have value only when the strike price is met, which is known as an at-the-money option or when the strike price is exceeded...Read More

Currency Options

Currency options are a powerful kind of investment vehicle that provides the holder with the right, but not the responsibility, to purchase or sell a... Read More

Credit Spread

In the dynamic realm of financial markets, experienced investors and traders utilise various strategies to optimise risk-adjusted...Read More

Delta Hedging

In the complex world of financial markets, managing risk is a crucial aspect of successful investing. Delta hedging is a popular...Read More

What Is Put Writing?

Put writing, an integral part of options trading involves selling a put option to open a position. In simpler terms, when you write a put, you're selling a contract...Read More

Covered Call

Covered calls refer to a popular option selling strategy. In this strategy concerning the covered call, the shares of a particular stock...Read More

Guidance to Futures and Options Trading in the Stock Market

Opening a futures and options (F&O) trading account is just the beginning of your journey into this...Read More

Notional Value

In a derivative contract, the value of the underlying asset is referred to as Notional Value (NV), or simply Notional...Read More

Beginner’s Guide to Derivative Trading with FnO 360

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Options Strangle Strategy: A Complete Guide for Beginners

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What is Long Unwinding?

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What is Long Build Up

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Iron Condor Explained: A Beginner’s Guide to Smart Options Trading

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Synthetic Put Strategy: Definition, Benefits, and How It Works

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Synthetic Call Strategy: All You Need to Know

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Long Call Calendar Spread Explained: Strategy, Setup & Profit Potential

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Long Put Calendar Spread Explained: Strategy, Setup & Profit Potential

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What is a Diagonal Call Spread? Strategy, Setup & Payoff Explained

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What is a Diagonal Put Spread? Strategy, Setup & Payoff Explained

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Double Diagonal Spread Strategy in Options Trading Explained

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Iron Butterfly vs. Iron Condor: Which Strategy Works Best in Sideways Markets?

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Iron Butterfly Adjustments: Rolling, Hedging & Profit Booking Strategies

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What is a Front Ratio Put Spread?

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What is a Front Ratio Call Spread? Strategy, Setup & Payoff Explained

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Covered Calls vs. Dividend Investing

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Iron Condor in a Directional Market

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What is IV Crush in Options Trading?

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Best Momentum Indicators for Trend Analysis in Trading

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Selling Covered Puts: Best Conditions & How to Avoid Assignment

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What Is a Bear Trap in Trading and How to Avoid It

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What Is a Bull Trap in Trading and How to Avoid It

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What Is Vega in Options & How to Take Advantage of It

Learn what Vega in options means and how to use Vega trading strategies to benefit from volatility changes in the stock market.Read More

Rho in Options Trading: Does Interest Rate Really Matter?

Learn how Rho impacts option prices and when interest rate changes can influence call and put option values, especially in long-term trades.Read More

Option Greeks vs Technical Indicators: What Works Better in Indian Markets?

Explore whether Option Greeks or Technical Indicators offer better trading insights in Indian markets. Learn what works for options, volatility, and expiry setups.Read More

Understanding Theta in Options: How Time Decay Impacts Your Trade

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Understanding Gamma in Options & How It Impacts Your Trade

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Delta in Options Trading & How to Use it: How It Affects Your Profits and Risks

Options trading can offer tremendous flexibility and profit potential, but it also comes with unique complexities. Among these, understanding...Read More

How to Use Option Greeks for Intraday and Options Trading

To become a successful options trader in India, you need more than just a hunch or a chart pattern. Understanding and applying Option Greeks...Read More

Advanced Option Greeks: Skew, Vomma, Charm & How They Impact Your Trades

Understanding the Advanced Option Greeks—Skew, Vomma, and Charm—can give retail traders a serious edge. You don’t need to calculate...Read More

Top Delta Neutral Strategies Using Option Greeks

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Option Greeks for Weekly Expiry Trading – Nifty & Bank Nifty Focus

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How to Create Steady Income Using Options Trading

Learn smart options trading strategies like covered calls, puts, and spreads to generate steady income in Indian markets with managed risk.Read More

What is Option Premium? Meaning, Example & Pricing Formula

Option premium is the upfront fee paid to buy an option contract. It’s influenced by factors like time, volatility, and intrinsic value. Learn how it's calculated using m...Read More

What is the Moving Average Crossover Pattern?

Discover how moving average crossover strategies generate trading signals, their types (SMA/EMA), benefits, limitations, and how traders use them in various market condit...Read More

What is the Kicker Candlestick Pattern?

The Kicker Candlestick Pattern signals sharp market reversals driven by news or events. Learn its formation, bullish vs bearish setups, and how to trade it with confidenc...Read More

What is a Periodic Call Auction? Meaning, Process & Benefits Explained

A Periodic Call Auction helps trade illiquid stocks through scheduled sessions, ensuring fair price discovery, transparency, and reduced volatility on NSE and BSE.Read More

What Is an OTM Call Option? A Strategic Guide for Investors and Businesses

Understanding what an out-of-the-money call option is most often opens the door to flexible, risk-controlled investing for both individuals and enterprises.Read More

Binomial Option Pricing Model: All You Need to Know

The Binomial Option Pricing Model is a step-by-step method to value options by simulating price movements. It’s ideal for American options and offers flexibility, customi...Read More

What is a Cash Secured Put? Strategy, Example & Benefits Explained

A cash secured put is an options strategy where you sell a put and hold enough cash to buy shares if assigned—ideal for earning income or buying stocks at a discount with...Read More

What are Exotic Options? – Definition, Types & Examples

Exotic options are non-standard derivatives with custom features like barrier levels or averaging. Learn their types, use cases, and how they differ from traditional opti...Read More

ITM Call Options Demystified: Unlocking Strategic Advantage in Options Trading

ITM call options offer a unique combination of built-in value and leveraged opportunity, positioning them as a valuable asset for both individual traders and institutiona...Read More

Electricity Futures in India: How They Work and Why They Matter?

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Reversal Trading Demystified: Decode Chart Patterns and Predict Market Reversals

Master reversal trading by identifying key chart patterns, using indicators like RSI & MACD, and confirming trend shifts. Learn to trade smarter with strategic entry and ...Read More

Understanding Underlying Assets in Derivatives: Meaning, Types & Role

Learn about underlying assets in derivatives—what they are, how they impact futures and options, and their types like stocks, indices, currencies, and commodities in Indi...Read More

Black-Scholes Model Explained: Meaning, Formula & How to Calculate

Discover how the Black-Scholes Model works for pricing European options. Learn its formula, assumptions, inputs, benefits, and limitations with real-world examples.Read More

What is Margin Shortfall in Trading?

Margin shortfall occurs when a trader’s margin balance drops below required levels. Learn its causes, SEBI penalties, and how to avoid shortfalls in equity and derivative...Read More

Options Chain Analysis Explained: A Guide to Reading and Analysing Options Data

By learning how to read option chain charts and applying option chain analysis thoughtfully, you’ll be better equipped to understand market behaviour, manage risk, and ma...Read More

What are Barrier Options?

In this article, we’ll explore what barrier options are, how they work, and why traders—especially those dealing with volatile markets—often use them. Read More

Interest Rate Futures Explained: Meaning, Uses, and Benefits for Investors

Interest rate futures are more than just a sophisticated financial tool—they're a necessity in modern-day portfolio management.Read More

Option Chain: How to Analyze and Trade Smarter?

An options chain, also referred to as an options matrix, is a comprehensive listing of all options contracts available for a particular underlying asset. Read More

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