Learn Options

The concept of underlying and derivatives can be easily understood through examples. Let's take the example of an apple. The apple itself is the underlying, possessing its own value. If…

Securities and Exchange Board of India, SEBI 50 50 rule has generated considerable interest among option sellers in India. This rule mandates that when paying margin money to the exchange,…

Margins are required by the exchange and/or broker to maintain the position based on several factors. Traders shall ensure to have sufficient funds in their trading account to cover potential…

Option premium of a contract on Exchanges like NSE, BSE is similar to approaching a landowner to buy a piece of land with a small amount paid him upfront. Example…

Option prices are determined by current market price of the underlying asset, the strike price of the option, the time remaining until the option expiration date, and the expected volatility…

Futures and Options differ from each other with respect to the "obligation" to buy or sell something at a certain price on a specific date in the future. Read more...…