A cash Secured Put (CSP) is an options trading strategy that involves selling a put option on a stock that you wouldn’t mind owning at a lower price, while also setting aside enough cash to buy the shares at the strike price if the option is exercised. About Cash Secured Put When you sell a…
“Rich Dad Poor Dad” is a personal finance book written by Robert Kiyosaki that advocates for financial independence and teaches readers how to build wealth through investing, entrepreneurship, and education. About the Book The book – Rich Dad Poor Dad has been a popular and influential personal finance book since it was first published in…
Credit spreads are a type of options trading strategy that involves selling one option and buying another option of the same underlying asset with different strike prices. The objective of this strategy is to earn a net credit while limiting the risk exposure. Credit spreads can be used in a variety of ways to manage…
Credit score is a three-digit numerical representation of an individual’s creditworthiness. It is based on an individual’s credit history, repayment behavior, and credit utilization. In this article, we will see the popular scoring agencies, calculation weightages, scoring ranges & interpretation, advantages of having higher score and disadvantages of lower score. Why a good Credit score…
Impact of Dividend on futures price, depends on whether the futures contract is a cash-settled or physically settled contract. Consider the following to understand the impact of dividend on Futures price: Dividends – Cash settled futures contracts For cash-settled futures contracts, the impact of dividends on futures prices is generally minimal. This is because the…
Futures are exchange-traded derivatives contracts. These contracts help in locking the future delivery of a commodity or stock at a price set today. What is a derivative contract A derivative contract is a financial instrument that derives its value from the underlying assets, such as stocks, bonds, commodities, currencies, or interest rates. Derivative contracts are…