List of Derivatives Articles

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Derivatives Market Guide

Why are Market Lots Different for Different Stocks?

Have you ever wondered why there are different stock lot sizes in futures and options trading. One of the unique features of exchange-traded futures in India is that they are standardized.

How to Square Off My Futures Position?

What do we understand by squaring off a futures transaction? To understand how to square off futures position, remember that futures position can be either long or short.

How to Start Futures Trading?

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

What is Super Contango in the Futures Market?

In the Indian market, the equity and commodity markets used words like Badla and Undha Badla. These are more popularly known as Contango and Backwardation in market parlance.

What is Forward Rate and Spot Rate?

If you have been trading in the commodity markets or the forex markets, you would be quite familiar with the concept of spot rates and forward rates.

What are American and European Options?

If you are a trader in the F&O market, you must be familiar with concepts like European Options and American Options.Here we look at what are American options and we also look at the European Option definition.

What is Open Interest?

One of the most popular and widely used words in the lexicon of F&O trading is open interest. As the name suggests, open interest represents the open futures and options positions in the market that are yet to be closed out or exercised or expired.

What is Lot Size in Futures?

One of the unique features of exchange traded futures in India is that they are standardized. One of the methods of standardizing futures and options contracts is through the prescription of minimum lot sizes.

How are Options Priced?

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.

What are the Features of Options?

To understand options, one needs to understand options features and option contract features.These options features and option contract features refer to the basic DNA of an option contract.