India’s derivatives market has witnessed a sharp increase, especially among retail investors. A significant driver behind this trend is the Securities Transaction Tax (STT). Originally implemented to curb market speculation and enhance tax revenue, STT is now being scrutinised for its role in promoting risky trading behaviour. Is STT quietly fueling a speculative surge in […]
If you have recently started to explore the world of derivatives, you must already be aware that they are risky assets. As renowned investor Warren Buffet says—“Risk comes from not knowing what you’re doing.
If you have been learning about the stock market, you may have heard many investors label futures and options as risky assets. They are not wrong; however, it’s no secret that some of the most renowned investors
The idea of implied volatility is crucial while trading options. It’s a gauge of how likely it is that the underlying asset will move, changing the market price of the option.
A call or put has an expiration date, which traders must be conscious of if they regularly trade.This expiry date may be monthly or weekly, depending on the type of contract chosen.
A futures contract enables traders to trade an underlying asset at a predetermined price and future date. The underlying asset might be anything from stocks to currency pairings to commodities (like gold or oil).
An equity derivative is a type of financial instrument whose value is based on changes in the prices of the underlying equity securities, such as stocks.
Options may be a suitable choice if you want to diversify your portfolio beyond stocks, mutual funds, and bonds. That said, both the risks and the benefits can be substantial.
Derivatives are not exclusive to equities; investors can also trade derivatives of other financial instruments like commodities, bonds, and currencies. In this article, we will cover derivative trading
A derivative in the stock market is a contract between two parties for buying or selling the underlying assets. Every derivative contract has an expiration date.
In recent years, online trading has been boosted by thousands of traders who seem to have grown over time. Now, traders tend to do futures and options through online brokers.
An index call is a type of options contract in derivatives trading which the underlying asset is an index, such as the S&P 500 or the Nifty 50. In the Indian stock market, the Nifty 50 is a widely followed index