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Derivatives

8 articles.

Explainer · Derivatives

SEBI’s F&O crackdown: what changed in 2024–25, and why

After data showed most retail F&O traders losing money, SEBI tightened the rules. The six big changes — bigger lots, fewer weekly expiries, upfront premium — explained.

5 min read
Explainer · Derivatives

Futures explained, with a real Nifty example

Futures let you control a huge position with a small amount — which is exactly why they're so risky. What a futures contract is, with real Nifty numbers.

2 min read
Explainer · Derivatives

Option Greeks in plain words (delta, theta and friends)

An option's price moves for several reasons at once. The "Greeks" measure each one — explained in the simplest possible way.

2 min read
Explainer · Derivatives

Calls and puts explained: what every beginner must know about F&O (and the SEBI warning)

Options (calls and puts) and F&O look exciting and cheap to start. In plain words: what they are, how they differ from shares, and why SEBI found over 9 in 10 traders lose money.

2 min read
Explainer · Derivatives

Options strategies for beginners: covered calls and protective puts

Not all options use is reckless betting. In simple words: two safer, well-known strategies — the covered call and the protective put — plus the costs and the risks to know.

2 min read
Explainer · Derivatives

Options spreads, straddles and strangles: risk-defined vs unlimited risk

Beyond single options lie spreads, straddles and strangles. In simple words: how they work, the vital difference between risk-defined and unlimited-risk trades, and why selling options can be so dangerous.

3 min read
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Explainer · Derivatives

How Often Does NIFTY 50 Move 1%, 2% or 3% in a Single Day?

How frequently does NIFTY 50 move more than 1%, 2% or 3% in a single trading day? Ten years of data reveal a clear pattern in daily NIFTY movements and raise an interesting question for options traders.

2 min read
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Insight · Derivatives

87.7% of Retail F&O Traders Lost Money in FY26. So Who Made the Money?

SEBI's latest data reveals that individual F&O traders collectively lost ₹91,685 crore in FY26, with options accounting for 92% of those losses. But F&O is essentially a zero-sum game before transaction costs. If one side is losing, someone on the other side is gaining. So what are those winners doi

2 min read

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