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Options are derivatives that provide you with the right to buy or sell the underlying assets. However, you do not have an obligation to do so. Options thus represent opportunities wherein other derivatives, such as futures contracts, represent obligations. Options require the payment of a premium during purchase.

The price of a derivatives contract is linked to the underlying asset. That works through the creation of a riskless combination of the underlying asset and Derivatives. Since such pricing does not require the determination of the risk-seeking or risk aversion of the investor, it is known as risk-neutral pricing.

Crude oil, which is also known as black gold, is one of the most valuable commodities in the world as it is a primary source of energy for many crucial industries that keeps the world running.

Financial instruments form the basis of all monetary possessions in the modern world. The various financial instruments have different pros and cons, but the base principle remains the same. All financial instruments provide financial assets to one party and financial liabilities to the other.

Trading in the stock market requires skilful execution. Placing an order at the market’s best available price will yield you expected returns. Thus, you should know when to place an order for the sale-purchase of stocks in the market. There are a few basic order types to help you get through the techniques of stock trading. Want us to help you get better at trading? Click here to read what are the order types in the stock market.

Intraday trade involves the trading of shares within the span of a single day. As an intraday trader, if you have bought a certain number of a company’s shares at the start of trade on a particular day, you have to sell the same number of the company’s shares before the trading day ends to make any profit. This is called “squaring off”. If you fail to do this, the broker will square-off the transaction and charge you a certain fee called “square-off charges”.