Derivatives
Your comprehensive hub for derivative instruments and trading. Browse articles, guides, and glossaries on futures, options, forwards, swaps, pricing models, Greeks, and strategies for hedging and speculation.
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Videos
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Articles
12
Terms
8 mins
Understanding the Different Types of Derivatives in Trading
Derivatives are financial contracts derived from underlying assets, designed to manage price uncertainty. They allow participants to hedge risks, speculate on future price movements, and aid in price discovery. While powerful, they require proper understanding and risk management to be used effectively.
Financial Instruments
Derivatives
16 mins
Put Option vs. Call Option: A Quick Guide for Beginners
Call options profit from rising prices, while put options benefit from falling markets. Understanding their differences helps traders choose the right strategy and manage risk effectively.
Trading
Options
+ 1
13 mins
Speculation in Options
Speculation involves taking calculated risks to profit from anticipated market movements. In options trading, this means using contracts that derive their value from underlying assets to capitalise on expected price changes.
Trading
Trading Strategies
+ 2
Counterparty Risk
Counterparty risk is the risk that the other person or party in a financial deal might not keep their promise, like not paying or not delivering what they agreed to.
Trading
Derivatives
Delta Neutral
Delta neutral is a portfolio or trading strategy where the overall delta of the position is zero, meaning the portfolio's value does not change with small movements in the underlying asset's price.
Trading
Trading Strategies
+ 2
Derivative Markets
Derivative Markets are financial markets where derivative instruments, such as futures, options, swaps, and forwards, are traded. These instruments derive their value from an underlying asset, such as stocks, commodities, currencies, interest rates, or indices.
Derivatives
Market Fundamentals
Exposure Margin
Exposure margin is a type of margin that brokers charge to help protect against market fluctuations and potential losses in futures and options (F&O) trading. It is often referred to as an additional margin.
Derivatives
Margin
+ 2
