INTRODUCTION TO EQUITY DERIVATIVES

 

• Need of Financial Markets 

• Types of Financial Markets 

• Stock Market [Equity Market] 

• Equity Derivative Market 

• Other Derivative Markets 

• Need of Derivative Markets 

• History of Derivative Markets 

• History of Derivative Markets in India 

• History of Derivative Markets in World 

• Need of Derivative Markets - Hedging & Speculation 

• Types of Hedging

• What If 'No Derivative Markets'! 

• Derivative Markets Explained Via Example

• Types of Derivative Markets 

• Types of Derivative Markets in India

• Growth of Derivative Markets in India 

• Worldwide Derivative Markets - A Quick View 

• Role of Exchanges in Derivatives 

• Trading Role of Regulators in Derivatives 

• Trading Types of Equity Derivatives Futures in Foreign Indexes

 

FUTURES

 

• Futures Explained 

• Equity Future Vs Corresponding Equity 

• Equity Futures in India 

• Difference in Prices Between Futures and Its Underlying Equity 

• Difference in Price Movements 

• Difference in Capital Required To Trade 

• Difference in Risks 

• Difference in Need 

• Difference in Opportunities of Profit 

• Difference in Trade Cycle 

• Variations in Future As A Product 

• Future - Margin Requirements 

• Lot Sizes for Futures 

• Margin Requirements for Futures 

• Changes In Margin During Trade Cycle 

• Expiry Dates of Future Contracts 

• Settlement of Trades

 

OPTIONS

 

• Options Explained 

• Options - Call & Put 

• Call Explained 

• Put Explained 

• European Vs American Options 

• Strike Price, Expiry Dates, Lot Sizes 

• Options Vs Futures 

• Options Vs Stocks, Differences in Prices 

• Difference in Price Movements 

• Difference in Capital Required To Trade 

• Difference in Risks Difference in Need 

• Difference in Opportunities of Profit 

• Difference in Trade Cycle 

• Variations in Options As A Product 

• Options - Margin Requirement 

• Call - Changes in Margin During Trade Cycle 

• Put - Changes in Margin During Trade Cycle 

• Settlement of Options' Trade 

• Deliveries in Options' Trade

• Selection Between Index Options and Stock Options

• Option Valuation - Classical Methods and Practical Ways

• Option Premium - Effects of Time, Volatility

• Option Premium - Drop in Value With Time

 

TRADING STRATEGIES

 

• Design of Strategies for Beginner

• Factoring Considerations Such As Margin Required, Maximum Profit / Loss, Ease of Understanding, Ease of Taking Position & Closing Off

• Trading Strategy #1 Using Options Only 

• Trading Strategy #2 Using Options Only 

• Trading Strategy #3 Using Options Only 

• Trading Strategy #3 Using Options + Futures

 

OTHER TOPICS - TAXATION, REGULATIONS OVERVIEW

 

• Overview of Derivatives Taxation 

• Derivatives Income As Business Income 

• Derivatives Income As Speculation Income 

• Taxing As Business Income - Facts to Know 

• Sample Calculations of Tax Calculation for Derivatives Situation - Net Profit Situation - Net Loss 

• Other Aspects To Help in Taxation 

• What You Should Know While Talking to Your C.A. To Collaborate Easily on Derivative Taxation Of Your Income

• Quick Overview of Regulations, Legal Aspects

 

NEW TRADERS - STEPS AHEAD

 

• Your First Trade 

• Pre-Trade Analysis - How?

• Overview of Technical Analysis

• How to do Fast Track Analysis, Which Tool, Where to Get Past Data

• Tracking Positions 

• Booking Profit 

• Booking Losses 

• Use Of Fundamental Analysis

• Recommended Further Reading