List of Derivatives Articles

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Derivatives Market Guide

What is margin money?

In any business, you pay margin money to show your commitment and this gets adjusted to the final price.

What is Index Options and its Types?

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

How Options are Settled?

To understand settlement of options you need to break up the buy side and the sell side of the option distinctly.

What are derivatives expiry and settlement ?

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.

What is Derivatives Expiry?

During the last week of every month, we tend to hear the words like derivatives settlement and derivatives expiry on all the business and news channels.

What are Different Strategies for F&O Trading?

Futures and options are not just about trading and hedging but also about simple and hybrid strategies Futures and options strategies are at the core of derivatives and there are a variety of F&O trading strategies that one can safely and effectively apply.

what is implied volatility?

In financial markets we all understand volatility as something very unstable and very bad.

What is Rollover?

Rollover may sound like a complex and high flying esoteric word but in reality it is quite simple. You must have heard the word rollover quite often concerning futures. Traders often refer to rollover in the stock market as long rollover or short rollover.

What is Strike Price and Strike Price Intervals?

One of the most important aspects of an options contract is the strike price or the exercise price. This is the price at which the buyer agrees to buy the stock and the seller agrees to sell the stock.

What are the uses of options?

An option is a right to buy without the obligation to buy or a right to sell without the obligation to sell. The former is the buyer of a call option and the latter is the buyer of a put option.