Derivatives (forwards, futures, options & swaps) are the source of most financial product structuring & financial engineering. Each derivative instrument has its own mechanism and purpose. Options amongst the derivatives occupies the maximum market mass. Trading strategies using Basic Options & Advanced Option are very potent tools be it for hedging financial risk or speculating on views or exploiting arbitrage opportunities arising out of market inefficiencies. However the caveat remains that such trading strategies developed using knowledge in options must be structured well and with utmost discipline else the leverage with such trading strategies using options or advanced options is enough to challenge the very solvency of the trader, arbitrager or business person / house.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking "Accept", you consent o the use All the cookies.