Introduction
In the ever-evolving world of financial markets, savvy investors and traders continuously seek strategies to optimize returns while managing risk. Among the plethora of strategies available, the covered call stands out for its simplicity and efficacy, especially when applied to a dynamic asset like Euro Futures. This article delves deep into the...
What are derivatives?
Basic interpretation : something which is based on another source.
A derivative is a contract or product whose value derives from the value of the base asset. The base asset is called the underlying asset.
i.e., Sugar prices will rise if sugarcane prices increase due to low production. It means sugarcane is the underlying asset of sugar...
I. Introduction
Derivatives trading is a vital aspect of modern finance that encompasses various financial instruments, including futures, options, swaps, and forward contracts. Derivatives are financial instruments whose values are derived from underlying assets such as commodities, equities, bonds, interest rates, or currencies. They provide a robust mechanism...
Derivatives trading!
What I believe has been the absolute market revolution since shares.
Derivatives might sound complicated and something you would hear from a professor or a know-it-all businessman – but they’re really not.
I am no academic or even remotely one of the smartest guy’s in the world. And if I can grasp the idea and understanding of...
Hi Friends
Today we will explain the option contracts affect on crypto and other markets.
First lets see whats an option contract?
Options are derivative contracts that entitle the purchaser to buy or sell the connected asset at a predetermined price before the contract expires.
There are two types of options , call and put. The right to buy is known as a ‘call’...
Today we prepared for you 3rd part of our paper on asset classes for beginners. Purpose of this paper is to concisely detail futures contracts, forwards, swaps and options.
Asset Classes - Part 1 and 2 - For beginners
Feel welcome to read part 1 and part 2 if you have not yet.
Derivative
Derivative is a type of financial asset which derives its value from...
What is the put/call ratio?
The put/call ratio (PCE) is a popular barometer of market sentiment, which shows the ratio of trading volumes of Put vs Call options. However, with distortions in the current price of nearly every instrument off the back of "free money," and persistent market intervention by policy makers, we're not quite seeing the price discovery...
How to trade stocks with call and put options?
Why one may consider options trading?
One may consider options trading to generate income, to hedge his or her portfolio, and to speculate the next price move.
What is a call option?
A call option allows the option buyer the right, but not the obligation to buy a security at a predetermined price within a specific...
I do not know how many people are interested in this. I know I am.
I am not a historian, I am exposing here what I know, some of it might be inaccurate.
For those that do not know a derivative is a financial product derived from an underlying asset or reliant on it.
So in other words currencies, indices, bonds, interest rates, commodities, stocks.
65 million...
Some may not have heard of Deutsche Bank. Some may not know what 'systematic risk' is. Well, whether you heard of any of this before listen up. DB has been in serious trouble for years and in recent weeks there is more trouble.
As the rules do not allow me to reference what I say here, people will need to Google some of this.
Deutsche Bank has been over...
