Option Spreads – A Strategy to Reduce Your Margin and Risk

Option Spreads – Overview Introduction When we talk about options we used to discuss about the option premium either paying or receiving. When you are buying an option you have to just pay the premium. When you are selling an option, you have to pay the span and exposure margin associated with it. However, ifRead More

Delta Hedging – A market neutral trading strategy

Delta Hedging Strategy – Overview How great would it be to see a profit and loss curve against the underlying is shaped like a U? Where, regardless of market movement, you are always making money? It’s rare enough to find a profitable strategy so why don’t we start by drawing up a P&L sheet thatRead More

Commodities 101: Introduction to Commodities

Introduction to commodities Due to the recent downturn in the global economy, it has resulted in lower sentiments for investors, especially in the emerging markets, which has left investors wondering whether investing in equities is a good decision or not. Investors have started exploring other investment opportunities apart from traditional investments. This article gives the userRead More

Importance of Delta Hedging in Options

Delta Hedging Introduction What is the meaning of risk in the stock markets? Risk is basically defined as loss of trading capital. This means losing money in trading. Option trading always termed as risky mainly because of the nature of stock and index options as they are highly leveraged and option trading risks can leadRead More