We usually use options to hedge our positions in the equity market, reduce the losses, and protect our profits. But what if one of your options strategies goes wrong, you may incur a large amount of losses too. This is...
A futures contract is a contract between a buyer and a seller in which, the former agrees to buy a specific number of shares or an index from the latter, at a pre-mentioned time in the future for a pre-determined...
A forward contract is a contract agreement for buying or selling an underlying asset at a particular price on a specified date in the future.
Hindi: आप इस लेख को हिंदी में भी पढ़ सकते है| If someone wants to trade in Futures and Options (F&O), they should know certain terms, F&O ban is one of them. Now the question arises that what is Futures...
Have you been in the stock market for quite a few years and now you are considering buying or selling options? If yes, then selecting the strike price is the most important decision to make. When you pick your options...
English: Click here to read this article in English. शेयर बाज़ार में काम करते समय, आपने “डेरीवेटिव” शब्द को अवश्य सुना होगा׀ डेरीवेटिव मार्केट दो पक्षों के बीच होने वाला एक अनुबंध है, जो अपनी अहमियत एक आधारभूत एसेट से...
When dealing in the stock market, you must have heard the term "Derivatives". A derivative is an agreement between two parties, which derives its value from an underlying asset, which may be stocks, currency, commodities, etc. .
Most of the traders who trade in the futures market end up in losing money in the futures and options market. The most common mistake they make is that they do not analyze the open interest. Open Interest is one...
Open Interest defines the total number of open or outstanding contracts presently held by the market participant at a given time. Open Interest analysis helps in the identification of stock market trends. In simple language, this analysis helps a trader...
In finance especially in a derivative market, the contracts are often executed on pre-decided settlement date. In the case of futures and options, on the settlement date, the contract seller may either opt for delivery of the underlying asset (which...
Let’s understand margin for options trading and settlement. The investors who buy option contracts are required to maintain the margin requirements on the position. Based on the position taken by the investor, the margin requirement varies. Traditionally investors need to...
If you’re in the financial market for quite some time or involved in trading and investment, you might have heard about derivative. Derivative is a vast topic which is often used for speculative and hedge investments. If you know about...
