In this blog, we will try to understand all things related to taxation when trading is declared as a business income. Trading income declared as business income can be classified...
When two traders agree to trade a specific asset at a certain price in the future, there are certain risks involved. A key role of exchanges is to eliminate the...
There are two types of derivatives markets – Exchange-Traded & Over the Counter (OTC). But first, let’s look at a scenario. If Mr. X is trying to sell a house,...
What Is Rho? Rho measures how the price of an option changes with changes in interest rates. Rho is the least important of all the 5 option Greeks. How Does...
What is Vega? Vega is the option Greek that explains the relationship between the price of an option and volatility changes in the underlying security. Theoretically, Vega gives the value...
What Is Theta? Theta is the Greek that explains the relationship between the price of an option and the time to expiry. The extrinsic value i.e. non-intrinsic value of an...
What Is Gamma? As Delta changes with underlying price, Gamma is used to measure the rate of change of Delta. Gamma is the second derivative of the change in option...
How much does an option’s price move as the price of the underlying asset changes? Delta can tell us. What Does Delta Measure? Delta measures how much the option price...
Would a trader wish to be stuck in a long position because there is just no buyer for it? Definitely not! And that’s why liquidity is so important. What Is...
Delta, Gamma, Theta, Vega & Rho, a.k.a the most common option Greeks, are an important tool for option traders. Option Greeks measure the different factors that affect the price of...
