Margin money is the amount of money that an investor must deposit with a broker in order to purchase securities on margin. Margin trading allows investors to purchase more securities than they could otherwise afford with their own cash.

Trading in options differs significantly from trading in equities. A key distinction between equities and options lies in ownership – equities provide a fractional ownership in the company, whereas options are contractual agreements granting the right to buy or sell a stock at a specific price (Strike Price) on a designated date (Expiry Date). In the case of a call option purchase, you possess the right (but not the obligation) to acquire a stock/index at the strike price before the option expires. Conversely, with a put option purchase, you have the right (but not the obligation) to sell a stock/index at the strike price before the expiration date.

Equity and derivatives are two different types of financial instruments. Equity represents ownership in a company, while derivatives are contracts that derive their value from an underlying asset, such as a stock, bond, or commodity.

Read the article to understand the difference between how can you better understand the difference between the pricing structure in spot and future pricing

Swaps are derivatives contracts where two parties swap cash flow or liabilities from one financial instrument to another. Even though the instrument can be nearly anything, most swaps involve cash flows based on a notional principal amount, such as a loan or bond. Read on to learn and understand the definition and meaning of swap derivatives.

The futures pricing formula is a mathematical equation that can be used to determine the theoretical fair value of a futures contract.

Put options are commonly used as a hedging tool against potential losses in the underlying asset or as a way to profit from a decrease in the asset's value. The price of a put option is affected by factors such as the price of the underlying asset, the strike price, time until expiration, and market volatility. Read this article to better understand how put options work.

The National Stock Exchange of India (NSE) has announced a significant change in the expiry day of index and stock derivatives contracts. This revision, set to take effect from April 04, 2025, aims to streamline trading operations and enhance market efficiency.

Options trading can be complex, with many interplaying factors impacting pricing and profitability. Two of the most important concepts for put option traders to understand are time decay and charm decay.