Medi Assist Healthcare IPO

Open Demat Account

Open Demat Account Login

Home Derivatives

Finance Wiki

Trending Categories

All Financial Terms Financial Instruments Market Entities Corporate Actions Public Offerings Fixed Income Instruments Currency Commodity Mutual Funds Derivatives Trading Terms Taxes

More

More

Derivatives Trading Terms Taxes Property Fixed Income Credit Cards Options and Futures Stocks Insurance IPO Technicals Retirement Planning Loans Gold Bank Deposits

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

#

Derivatives

Extrinsic Value

The intrinsic value is the inherent value of an option determined by its underlying asset's current price. This means that the extrinsic value is influenced by factors such as time until expiration, volatility, and interest rates.

Understanding the concept of extrinsic value is crucial for investors in the realm of finance. It refers to the additional value that an option holds beyond its intrinsic price, which is based on the underlying asset's current market price. In simpler terms, it is the premium that investors are willing to pay for the potential future profits of the option. However, this value is not set in stone and is subject to various external factors such as time, volatility, and interest rates.

Last Trading Day

In finance, the last trading day is the ultimate opportunity for a derivative contract to be either traded or settled before the delivery of the underlying asset or cash set...

Intrinsic Value of an Option

This value is important to consider when making investment decisions. Understanding the concept of intrinsic value in the world of finance is crucial for making informed inv...

Long Hedge (Futures)

A long hedge refers to a strategy where an investor takes a long position on a futures contract. This is commonly utilized by hedgers who plan to purchase an asset in the fu...

In the world of finance, the concept of derivatives is a crucial one to understand. Essentially, derivatives are financial instruments that derive their value from underlyin...

An option is considered In-the-money when the buyer is in a profitable position at a specific spot price of the underlying securities. This term is used in reference to both ...

Canceling Order

This is usually done when the initial order is no longer valid When a client requests to cancel a previous order, we refer to this action as a Canceling Order. This is a com...

Open Free Demat Account!

Enjoy Zero Brokerage on Equity Delivery

Join our 2 Cr+ happy customers

Want to open an NRI account?

Explore other categories

IPO

All terms and concepts related to the process in which a private company offers its shares to the pu

Financial Instruments

Legal contracts that represent financial value, such as stocks, bonds, options, futures, and various

Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares i

Retirement Planning

All terms and concepts related to the process of saving and investing to ensure financial security a

Fixed Income Instruments

All terms related to investments like bonds or treasury bills that provide regular, fixed payments,

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Mutual Funds

All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m

Gold

All terms and concepts related to the precious metal gold, including its price, trading, investment,

Public Offerings

All terms related to a company selling its shares or bonds to the public for the first time (IPOs) o

Credit Cards

All terms and concepts related to the use, features, and management of payment cards allowing users

4.4 Cr+ DOWNLOADS

Enjoy Zero Brokerage On Stock Investments