Derivatives

• Options Trading Strategy Guide
This guide tells you all that you wanted to know about options...

• Asset allocation using derivatives
'The derivatives market helps in making asset allocation decisions.'

• Using index futures: A case for arbitrage - II
'One could use a portfolio of shares earning nothing to help juice up returns by earning revenues from stocklending via the futures markets.'

• Using index futures: A case for arbitrage - I
'Index futures markets allow traders to earn profits by arbitrage across markets.'

• Using index futures: A case for speculation
'Index futures markets are particularly appealing to the speculator because of the leverage and ease of trading that they provide.'

• Using index futures: A case for hedging - IV
'The crucial point to be understood here is that holding cash when you want to be invested in equity is risky. It is as important for an owner of shares to hedge against a drop in Nifty as it is for the holder of cash to hedge against a rise in the Nifty.'

• Using index futures: A case for hedging - III
'Used appropriately, stock index futures offer a hassle-free, inexpensive technique of changing the risk of a portfolio.'

• Using index futures: A case for hedging - II
'If you are a stockpicker and would like to go short a stock that you believe is overvalued, you could easily hedge away the unnecessary risk of index movements by taking an appropriate position in the index futures market.'

• Using index futures: A case for hedging - I
'If you are a stockpicker and would like to go long in a stock that you believe is undervalued, you could easily hedge away the unnecessary risk of index movements by taking an appropriate position in the index futures market.'

• Futures exchanges: Insurance providers to the nation
'The world wants insurance against price risk and that is what the futures industry provides so effectively and efficiently.'

• The mechanics of futures trading
'A futures contract is an agreement to buy or sell an asset for a certain price at a certain time in the future. Once initiated, the contract takes a life of its own and trades in the market just like any other security or commodity.'

• Derivatives: Vital tools for hedging and curbing risks
'The derivatives markets accord investors the facility of reducing their financial risks, but their success hinges on the extent to which they allow investors to hedge or cut risk.'

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