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Derivatives




Short Index Call


A short call option on an index where a trader can profit from a decline or sideways movement in the price of the underlying index with limited reward potential and unlimited risk.

This position is established by selling/ writing an index call (for cash). Consequently, the seller may end up paying cash equal to the in-the-money (ITM) amount (if the index call expired in the money).



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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