h1 Derivatives Trading Basics

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.

Enjoy 0* Brokerage with 5paisa
Mobile No. belongs to

By proceeding, you agree to the T&C.

hero_form
Difference Between Options and Futures

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

Hedging Strategy

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

Options Strategies

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

Straddle Strategy

Short selling, or as it is commonly known as Straddle strategy, is one of the most misunderstood derivative strategies...

What are Derivatives?

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

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...

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...

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...

What Are Exchange Traded Derivatives?

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

Stocks vs Futures

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

Stock Index Futures

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

What is Meant by Futures in Trading?

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

How to Trade in Futures and Options?

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

Difference Between Forward and Futures Contract

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

What are Forward Contracts?

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

Derivatives Advantages & Disadvantages

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

What are Currency Derivatives?

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

Difference Between Equity and Derivatives

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

Derivatives Trading in India

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

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...

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...

What is Option Volatility & Pricing Strategies for Advanced Trading

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

What is Forward Market?

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

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...

What are Swaps Derivatives?

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

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...

What are the Various Types of Derivatives?

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

What are Bullish Option Strategies?

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

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...

Call Options Basics and How it Works?

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

What is an Open Interest?

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

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...

What is Put-Call Ratio?

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

What are Options?

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

Understanding Various Options Trading Strategies

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

Types of Options

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

How to Trade Options?

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

Options Trading Tips

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

How to Choose Best Stocks for Option Trading?

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

What is a Put Option?

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

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 ...

What is Strike Price?

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

What is 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 ...

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 ...

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...

What is the Call and Put Option?

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

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....

Options Selling

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

Butterfly Option Strategy

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

Short Strangle: How Does It Work In 2023

All investors need to expand their knowledge about different financial strategies as much as possible. The short strangle option strategy...

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,...

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...

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?...

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...

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...

Credit Spread

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

Delta Hedging

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

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...

Covered Call

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

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...

test 123

test123

Open Free Demat Account

Be a part of 5paisa community - The first listed discount broker of India.

+91

By proceeding, you agree to all T&C*

footer_form