Derivatives Market

Why should one take this course?

  • To learn the basics of the derivatives market
  • To understand the use of derivative products in speculating, hedging and arbitraging
  • To learn the trading, clearing, settlement and risk management in equity derivatives
  • To learn the regulatory, accounting and taxation issues relating to equity derivatives

Who will benefit from this course?

  • Students, Teachers
  • Stock Brokers and Sub-Brokers dealing in Derivatives
  • Employees of BPO/IT Companies
  • Custodians and Employees of Mutual funds
  • Individual investors as well as High Networth Individuals (HNIs)
  • Portfolio Managers, Financial Institutions
  • Anybody having interest in the Stock market operations

Test details

Duration : 120 minutes
No. of questions : 60
Maximum marks : 100, Passing marks : 50 (50%); There is negative marking for incorrect answers.
Certificate Validity : For successful candidates, certificates are valid for 3 years from the test date.

NSE's Examination Fees

Rs. 1,500/- (Rupees One Thousand Five Hundred only).

COURSE OUTLINE

INTRODUCTION TO DERIVATIVES
Concept of derivatives; Types of products, Participants and functions; Difference between Exchange-traded vs. OTC derivatives markets.

MARKET INDEX
Concept of derivatives; Types of products, Participants and functions; Difference between Exchange-traded vs. OTC derivatives markets.

INTRODUCTION & APPLICATION OF FUTURES & OPTIONS
Basics of Forward, Futures and Options Markets; Payoff for futures and options contracts; Difference between trading securities and trading futures on individual securities; Strategies of hedging, speculation and arbitrage in Futures and Options.

TRADING
Trading system of Futures and options; Entities in the trading system; Functionalities of the NEAT System; Transaction Charges.

CLEARING & SETTLEMENT
Clearing entities; Clearing and Settlement Mechanism; Risk Management and Margining System.

REGULATORY FRAMEWORK
Securities Contracts (Regulation) Act, 1956; Securities and Exchange Board of India Act, 1992; Regulation for derivatives trading; Accounting and Taxation issues.