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What is Equity Derivatives?

Equity derivative is a class of derivatives whose value is derived from the underlying asset, the equity value. Options and futures are by far the most common equity derivatives.


This course aims at providing a basic insight about various derivatives products available in equity derivatives markets and provide knowledge about various processes like clearing, settlement and risk management. This course also provide glimpse of competencies related to the understanding of the financial structure in India and the importance of the different rules and regulations governing the Indian securities market, especially those related to the equity derivatives segment. Additionally this course will provide you knowledge about the various trading strategies that can be built using futures and options on both stocks and stock indices.


After completion of the course, an individual will have complete information about all the terminologies of the Indian equity derivatives market. An individual will have a true and clear picture regarding the process of equity derivatives market like clearing and settlement, risk management, operational mechanism etc. An individual will have clear understanding about the various trading strategies that can be built using futures and options on both stocks and stock indices. The syllabus covers all the topics with interactive sessions. Moreover the contents of the course covers all the topics for NISM ( National Institute Of Securities Markets ) Series - VIII : Equity Derivatives Certification Examination and makes every student capable of cracking it. You will be well prepared for the NISM examination.

Intended Participants

Anybody (Retail Traders, New Investors, Students, Researchers, Financial Service Professionals, hedgers, arbitrageur or any individual) having interest in the Derivative market and its operation and want to enhance his/her knowledge, overall productivity or want to build their career in this market are welcome. As not only we provide theoretical knowledge, but also practical application, mentoring and training guidance, to help each student achieve their goals for investing or trading.

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  • Basics of Derivatives
  • Derivatives Market – History & Evolution
  • Indian Derivatives Market
  • Market Participants
  • Types of Derivatives Market
  • Significance of Derivatives
  • Various risks faced by the participants in derivatives

  • Introduction to Index
  • Significance of Index
  • Types of Stock Market Indices
  • Attributes of an Index
  • Index management
  • Major Indices in India
  • Application of Indices

  • Introduction to forward and futures Contracts
  • Pay off Charts for Futures contract
  • Futures pricing
  • Commodity, Equity & Index Futures
  • Uses of futures

  • Basics of options
  • Pay off Charts for Options
  • Basics of Option Pricing and Option Greeks
  • Uses of Options

  • Option Spreads
  • Straddle
  • Strangle
  • Covered Call 
  • Protective Put
  • Collar
  • Butterfly Spread 
  • Income Tax Act, 1961 

  • Trading System
  • Selection criteria of Stocks for trading
  • Selection criteria of Index for trading .
  • Adjustments for Corporate Actions
  • Position Limit
  • Using Daily Newspapers to Track Futures and Options

  • Clearing Members
  • Clearing Mechanism
  • Settlement Mechanism
  • Risk Management
  • Margining and mark to market under SPAN

  • Securities Contracts (Regulation) Act, 1956
  • Securities and Exchange Board of India Act, 1992
  • Regulation in Trading
  • Regulations in Clearing & Settlement and Risk Management
  • Major recommendations of Dr. L.C.Gupta Committee
  • Major recommendations of Prof. J.R.Verma Committee

  • Accounting
  • Taxation of derivative transaction in securities  

  • Understanding risk profile of the client 
  • Investors Grievance Mechanism