Buying Call vs Selling Put – Meaning, Example, and Differences
Options Trading across markets -stocks, securities, currency, and commodities is a very, very prominent trading stream now across the world. It garners the maximum… Read Article
Derivative Instruments
Credit Spread vs Debit Spread – All You Need to Know
Options Trading gives a right but not an obligation to buy or sell the security at a specified price. Credit Spread and Debit Spread… Read Article
Embedded Derivatives – Meaning, Example, and More
A derivative is a financial instrument that gets its value from an underlying asset. An embedded derivative is similar to the usual derivative, with… Read Article
Call Spread vs Put Spread
Call and Put Spreads are popular options strategies. Under these strategies, an investor buys and sells an equal number of calls or puts option… Read Article
CLO vs CDO
Many who followed the 2008 financial crisis closely would know about CDO (collateralized debt obligations). They were a major reason triggering the financial crises.… Read Article
Non-deliverable forward (NDF)
A non-deliverable forward contract is a type of forward contract used to hedge foreign exchange risk. Some of the other foreign exchange risk hedging… Read Article
Straddle – Meaning, Types, Example, and More
The straddle is a trading strategy that involves the use of options. This strategy calls for taking a neutral stand on the market. And… Read Article
Straddle vs Strangle – Differences, Example and More
Straddle and Strangle are both options strategies that help an investor make a profit. These strategies are suggested/recommended when the trader and the investor… Read Article
Contango – Meaning, Advantages, Disadvantages, and More
Contango is a term used in the Futures Market and contracts for commodities, currencies, stocks, and indices. Contango is a condition in the market… Read Article
Contango vs Backwardation
Contango and backwardation are the terms used in the futures market to describe two different situations. In both cases, the situations pertaining to the… Read Article
Backwardation
Backwardation is a situation in which the spot price or current prevailing price of a commodity or security is higher than its futures price.… Read Article