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Derivatives, Futures & Options

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Derivatives, Futures & Options

Long Call

A position created by buying a call option, with loss limited to the premium and gain rising as the underlying rises.

Profit at expiry = max(Spot - Strike, 0) x Lot Size - Premium Paid x Lot Size; Break-even = Strike + Premium ₹ Derivatives, Futures & Options

Long Put

A position created by buying a put option, with loss limited to the premium and gain rising as the underlying falls.

Profit at expiry = max(Strike - Spot, 0) x Lot Size - Premium Paid x Lot Size; Break-even = Strike - Premium ₹ Derivatives, Futures & Options

Lot Size

The fixed number of units of the underlying that one derivative contract represents.

Contract Value = Lot Size x Price of the Underlying shares