• Education
    • General
      • Dictionary
      • Economics
      • Corporate Finance
      • Roth IRA
      • Stocks
      • Mutual Funds
      • ETFs
      • 401(k)
    • Investing/Trading
      • Investing Essentials
      • Fundamental Analysis
      • Portfolio Management
      • Trading Essentials
      • Technical Analysis
      • Risk Management
  • Markets
    • News
      • Company News
      • Markets News
      • Trading News
      • Political News
      • Trends
    • Popular Stocks
      • Apple (AAPL)
      • Tesla (TSLA)
      • Amazon (AMZN)
      • AMD (AMD)
      • Facebook (FB)
      • Netflix (NFLX)
  • Simulator
    • Simulator
      • Create an Account
      • Join a Game
    • My Simulator
      • My Game
      • Create a Game
  • Your Money
    • Personal Finance
      • Wealth Management
      • Budgeting/Saving
      • Banking
      • Credit Cards
      • Home Ownership
      • Retirement Planning
      • Taxes
      • Insurance
    • Reviews & Ratings
      • Best Online Brokers
      • Best Brokers for Beginners
      • Best Roth IRA Accounts
      • Best Trading Platforms
      • Best Robo-Advisors
      • Betterment vs Wealthfront
      • Betterment vs Vanguard
      • Wealthfront vs Vanguard
  • Advisors
    • Your Practice
      • Practice Management
      • Continuing Education
      • Financial Advisor Careers
      • Investopedia 100
    • Wealth Management
      • Portfolio Construction
      • Financial Planning
  • Academy
    • Popular Courses
      • Investing for Beginners
      • Become a Day Trader
      • Trading for Beginners
      • Technical Analysis
    • Courses by Topic
      • All Courses
      • Trading Courses
      • Investing Courses
      • Financial Professional Courses
Options & Derivatives Trading
  • Options Trading Strategy & Education
  • Advanced Options Trading Concepts
Trading Options & Derivatives Trading

Options & Derivatives Trading

Options are derivatives that are often used by traders and investment professionals to manage or reduce their risk. Understanding options and other derivatives can enhance a trader's profitability.

Options & Derivatives Trading
  • Options Trading Strategy & Education
  • Advanced Options Trading Concepts
Derivative Definition
A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, index or security.
  • Derivative Definition
  • A bag with dollar money and a bank or government building.
    Tranches Definition
  • U.S. One-Hundred Dollar Banknotes and Indonesian 100,000 Rupiah Banknotes
    How Companies Use Derivatives to Hedge Risk
  • Cross-Currency Swap Definition and Example
  • European Option Definition
  • Synthetic Definition
  • Settlement Price Definition
  • Put Definition
  • Globex Definition
  • Time Decay Definition
  • Investment direction
    Securitization Definition
  • Long Put
  • Quality Spread Differential (QSD) Definition
  • Chicago Board Options Exchange (CBOE) Defintion
  • Calendar Spread Definition
  • Bank Bill Swap Rate – BBSW Definition
  • Cash-And-Carry Trade Definition
  • Leads And Lags Definition
  • Get Positive Results With Negative Basis Trades
  • Business building
    Introduction To Counterparty Risk
  • Derivatives 101
  • What Is Spread Betting?
  • Share of the Wiener Riesen Rad Ltd., issued 21. March 1898
    I Own Some Stock Warrants. How Do I Exercise Them?
  • Master Swap Agreement Definition
  • Price Concept
    What Is a Value Date?
  • Apple harvest in autumn.
    Market Futures: Introduction to Weather Derivatives
  • Cross-street of Wall St and Broadway
    Targeted Accrual Redemption Note (TARN) Definition
  • Financial Data Analyzing
    Forward Rate Definition
  • Derivatives
    How Big Is the Derivatives Market?
  • Outright Forward Definition
  • How is the price of a derivative determined?
  • Trading
    What Are the Main Risks Associated With Trading Derivatives?
  • Investor analyzing stock market investments with financial dashboard on smartphone and computer screens
    Over-the-Counter Derivative
  • Midsection of Businessman Using Calculator and Laptop at Desk
    Loan Credit Default Swap (LCDS) Definition
  • Plain Vanilla Swap Definition
  • Dual Currency Deposit Definition
  • Targeted Amortization Class (TAC)
  • Agreement
    ISDA Master Agreement
  • Zero
    Why Is the Initial Value of a Forward Contract Set to Zero?
  • Currency Swap vs. Interest Rate Swap
  • Investment Theme Stockmarket and Finance Business Analysis Stockmarket With Digital Tablet
    How do companies benefit from interest rate swaps?
  • stock market
    Derivative Product Company (DPC)
  • Volatility
    Top Spread Betting Strategies
  • Close-up of board display stock tickers
    Asset-Backed Credit Default Swap (ABCDS)
  • The Risks of Mortgage-Backed Securities
  • Milan - The Borsa Italiana in Business Square
    Italian Derivatives Market (IDEM)
  • Derivatives Transaction Execution Facility (DTEF)
  • Swap Transferring Risk With Participating Element (STRIPE)
  • Person typing on laptop
    Structured Repackaged Asset-Backed Trust Security
  • Rolling Hedge
  • Cashless Conversion Definition and Example
  • Swap Bank Definition
  • Cropped Image Of Man Checking Stock Market On Mobile Phone
    Options Price Reporting Authority (OPRA)
  • Mismatch Risk Definition and Example
  • Neutral
  • Getting Market Leverage: CFD versus Spread Betting
  • Forward Contracts: The Foundation Of All Derivatives
  • Arrears Swap Definition
  • Balloon Option
  • Delayed Rate Setting Swap Definition
  • Businessman and Businesswoman Planning in Airport Lobby
    Bond Market Association (BMA) Swap
  • Reference Entity
  • Range Accrual Definition
TRUSTe
  • About Us
  • Terms of Use
  • Dictionary
  • Editorial Policy
  • Advertise
  • News
  • Privacy Policy
  • Contact Us
  • Careers
  • California Privacy Notice
  • #
  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z
Investopedia is part of the Dotdash publishing family.