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Markets: Trading / Derivatives

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Derivatives

Apr 4, 2026

What Is the Heston Model?

Learn what the Heston model is, how stochastic volatility works, why it explains implied-volatility skew, and how traders calibrate it in practice.

22 min read

Derivatives

Apr 4, 2026

What Is Implied Volatility?

Learn what implied volatility is, how it is calculated from option prices, why traders use it, and where model assumptions matter.

21 min read

Derivatives

Apr 4, 2026

What Is the Black-Scholes Model?

Learn what the Black-Scholes model is, how it prices options through replication and hedging, and why traders still use it despite its limits.

22 min read

Derivatives

Mar 26, 2026

What Is DV01? How Traders Measure Interest Rate Risk in Dollars

Learn what DV01 is, how it measures dollar P&L for a 1 basis point rate move, how traders calculate and use it, and where its limits matter.

22 min read

Derivatives

Mar 26, 2026

What Is Delta Hedging?

Learn what delta hedging is, how it offsets an option’s directional exposure, why gamma forces rebalancing, and where the strategy breaks down.

23 min read

Derivatives

Mar 22, 2026

What is Put/Call Open Interest Ratio?

Learn what the put/call open interest ratio is, how it is calculated from outstanding options, and what it can and cannot say about market sentiment.

23 min read

Derivatives

Mar 22, 2026

What is Options Skew?

Learn what options skew is, why implied volatility differs across strikes, how SKEW and risk reversals work, and what skew says about tail risk.

21 min read

Derivatives

Mar 22, 2026

What is Initial Margin?

Learn what initial margin is, why derivatives markets require it, how it differs from variation margin, and how CCPs and bilateral models calculate it.

22 min read

Derivatives

Mar 22, 2026

What Is Convexity? How Curvature Shapes Bonds, Options, and Hedging

Learn what convexity means in bonds and options, how it relates to gamma, and why changing sensitivities shape hedging, pricing, and volatility.

19 min read

Derivatives

Mar 22, 2026

What Is a Gamma Squeeze?

Learn what a gamma squeeze is, how dealer hedging creates self-reinforcing price moves, and why 0DTE options can amplify volatility.

20 min read

Derivatives

Mar 21, 2026

What Is Open Interest?

Learn what open interest is, how it works in futures and perpetuals, how it differs from volume, and what it signals about trends and leverage.

22 min read

Derivatives

Mar 21, 2026

What Is a Risk Engine in Derivatives Trading?

Learn what a risk engine is in derivatives trading, how it calculates margin and liquidations, and why it matters for market stability.

25 min read