Standalone Risk
Standalone Risk: MeaningWe can define “standalone risk” as the risk that an investor faces when he holds only one single asset as an investment.… Read Article
Hedging
Hedging Strategies: Using Forwards, Futures and Options
Investors use hedging strategies to lower their risk exposure. These are strategies to handle the given situation in the market in case things do… Read Article
American vs European Option – All You Need to Know
Options, as we all know, are contracts where the holder/buyer has the right, but there is no obligation to buy or sell an underlying… Read Article
Put Options – Meaning, How it Works, Strategies, and More
Put Options is one of the two types of options, with the other one being Call. A put option is a contract that gives… Read Article
Call Options – Meaning, How it Works, Uses, and More
Call Options is one of the two types of options, with the other one being the put option. A call option gives the buyer… Read Article
Futures Contracts – Meaning, Features, Pros, Cons, and More
Futures Contracts are a legal agreement that allows buyers and sellers to buy and sell an underlying asset at some date in the future… Read Article
Hedging vs Speculation – All You Need to Know
Hedging and Speculation are the terms you would normally hear with futures trading. People, including traders, often use the term to convey the same… Read Article
Long Hedge – Meaning, Example, and How it Works?
A long hedge is a type of hedging strategy that producers or manufacturers use to lower the risk of price fluctuations. A producer or… Read Article
Cross Hedge
Fly High is an airline company. They expect that the prices of jet fuel will rise over a period of three months. So, as… Read Article
Hedge Ratio – Meaning, Formula, Importance, and More
Hedge RatioA hedge is a crucial component of the risk management process. Hedging one’s portfolio helps to mitigate risk and manage one’s exposure. Once… Read Article
Futures vs Options – All You Need To Know
Futures and options, as rightly said, are the derivatives of equities as both derive their value from equities. These derivatives are popular due to… Read Article