About Financial Derivatives (Options & Futures) Course
About Derivative analysis (options & futures) Course
So, Derivatives are secondary securities whose value is solely derived from the value of the primary security to which they are linked–referred to as the underlying. Derivatives are typically considered professional investing.
Introduction to financial derivatives analysis course
Language: English & Hindi l Time Duration: 1.5 Months l Fees: 17,000
Meanwhile, Let us give you some theoretical knowledge
Why do investors engage in derivatives trading?
Buying a commodity or investment at a cheap price in one market and selling it in another market is known as arbitrage trading. It should be noted, it is regardless of profit or loss. Also, You enjoy the differential in commodity prices between the two marketplaces also.
If the price of an asset fluctuates, your chances of losing money increase. Thus, You can use the derivatives market to find products that will help protect against a drop in the price of equities. Overall, In the case of equities that you want to get, you can also buy goods to protect against a price increase.
In fact, Some people use derivatives to move risks and park their extra funds. Others, but, use it to speculate and profit. You can profit from price swings without selling the underlying shares in this way.
Who is involved in the derivatives market?
Also, These are derivative market risk-takers. Without a doubt, They desire to take on retailers to make money. In comparison to the hedgers, they have a completely different viewpoint. Obviously, If the bets turn out to be correct, this difference of opinion allows them to make a lot of money. In the case above, you purchased a put option to protect yourself against a drop in stock prices. Besides, The speculator, who is your counterparty, will wager that the stock price will not decline. Lastly, You will not exercise your put option if the stock prices do not decline. As a result, the speculator maintains the premium and profits.
What Are The Different Types Of Derivative Contracts
So, A financial instrument is dependent on the value of underlying securities. For example, stocks are referred to as an option. Or, An options contract gives the buyer the choice to buy or sell the underlying asset. Contrary to depending on the contract type. In contrast to futures, the holder is not obligated to get or sell the asset if they choose not to. Undoubtedly, Each contract will provide a deadline by which the holder must exercise his or her option. Especially, The strike price of an option is the stated price of the option. Online or retail be commonly used to buy and sell options.
A swap is a contract between two parties to trade cash flow sequences for a specified period of time. At least one of this series of cash flows is usually set by a random or unpredictable variable at the time the contract is initiated, such as an interest rate, foreign exchange rate, equities price, or commodity price.
A swap can be thought of as a portfolio of forward contracts or as a long position in one bond combined with a short position in another. Interest rate and currency swaps are the two most prevalent and fundamental forms of swaps discussed in this article.
Equity Derivatives Certification curriculum
I. Basics of Derivatives
A. Basics of derivatives
B. Evolution of derivatives m
C. Indian derivatives Market
D. Market participants
E. Types of derivatives market
F. Significance of derivatives
G. Various risks faced by the participants in derivatives
II. Understanding Index
A. Introduction to Index
B. Significance and economic purpose
C. Types of Indices
D. Attributes of an Index and concept of impact cost
E. Index management
F. Major Indices in India
G. Applications of Index
III. Introduction to Forward
A. Introduction to Forwards
B. Payoff Charts for Futures contract
C. Futures pricing
-Cash and carry / Non-arbitrage model for futures pricing
-Expectancy model of futures pricing
-Concept of convergence of cash and futures prices
D. Basic differences in Commodity, Equity
E. Uses of futures
-Role of different players in futures market
-Use of futures contract as an effective instrument for managing
-Strategies for hedging, speculation and arbitrage in futures market
IV. Introduction to Options
A. Basics of options
B. Payoff Charts for Options
C. Basics of options pricing and option Greeks
Fundamentals of options pricing
Overview of Binomial and
Basics of Option Greeks
Uses of Options
V. Option Trading Strategies
A. Option spreads and their payoff charts
B. Straddle: market view and payoff charts
C. Strangle: market view and payoff charts
D. Covered Call: market view and
E. Protective Put: market view and payoff charts
F. Collar: market view and payoff charts
G. Butterfly spread: market view and payoff charts
VI. Introduction to Trading Systems
A. Trading Systems, corporate hierarchy, order types and conditions
B. Selection criteria of Stock for trading
C. Selection criteria of Index for trading
D. Adjustments for Corporate Actions
E. Position Limits
F. Using daily newspapers to track futures and options
VII. Introduction to Clearing
A. Clearing Members, their role and
B. Clearing Mechanism and computation of open positions
C. Settlement Mechanism for stock and index futures and options
D. Understanding margining and mark to market under SPAN
E. Risk Management features and position limits
VIII. Legal and Regulatory Environment
A. Securities Contract (Regulation) Act, 1956
B. Securities and Exchange Board of India Act, 1992
C. Important rules and regulations
D. Regulation in clearing
E. Major recommendations
IX. Accounting and Taxation
A. Accounting of Futures and Options contracts
B. Taxation of Derivative transaction in securities
X. Sales Practices and Investors Protection Services
A. Risk profile of the investors
-Importance of profiling clients in the sales process
-Importance of KYC
-Documents required by the investors to trade in a Derivatives contract
-Best practices in derivatives sales
B. Investors Grievance Mechanism
To learn more about the course, you can speak to one of our trading students or simply Walk into the institute.
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