Derivatives Trading Basics

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

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

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

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

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

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

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...

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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...

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

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

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

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

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

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

Open interest is a vital part of the options chain and is published on the NSE website every day when the market is open...

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

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

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

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

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

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

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

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

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

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

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

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

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 ...

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

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

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

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

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

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

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

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?...

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...

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...

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

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

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...

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

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

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

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

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

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

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

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

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

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

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 models like Black-Scholes.

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

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 confidence.

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

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.

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, customisation, and intuitive insights.

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 defined risk.

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 options.

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 institutional investors.

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 exit decisions.

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 Indian markets.

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

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 derivatives trading.