Derivatives: as we demystify it
Know the nuts and bolts of futures and options in the Indian context. A window to futures and options trading and a foundation, to learn effectively about financial derivatives, eliminating and minimizing jargon.
- 01What are Derivatives?A financial derivative is a contract between two parties, where the instrument under trade, derives its value from the price of the underlying…4 min · video
- 02What are Futures?Futures are financial derivative contracts that are standardised and traded on an exchange; a contract to buy or sell an underlying asset, at a…2 min · video
- 03Lot size of Derivative Contracts in Indian Stock MarketsNifty is the flagship index of the National Stock Exchange of India (NSE), comprising the top 50 actively traded stocks across various sectors.…7 min · video
- 04Margining system in FuturesThe stock exchange acts as a counterparty to the buyer of futures contract and also as a counterparty to the seller of the same futures3 min · video
- 05Futures PricingThe characteristics of the underlying asset influence the pricing of futures contract based on that asset. It has been difficult to crystallise on a…3 min · video
- 06Convenience yieldIdeal price of Futures contract = Spot price + Cost of carry – Inflows3 min · video
- 07Payoff of FuturesPay off on a position is the likely profit/ loss at expiry, that would accrue to a market participant with change in the price of the underlying…2 min · video
- 08Gift Nifty & Types of Market ParticipantsThe SGX Nifty, which traders and investors have used to predict the opening of the Nifty, the indicator for Indian stock markets, for years before…6 min · video
- 09OptionsAn option gives the buyer, the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or…3 min · video
- 10Terms that define an option contractThe buyer of an option contract is namely, option buyer. He has the right to buy/sell, the underlying asset, based on if it is a call option or put…5 min · video
- 11Payoff Profile of Option PositionsBuyer of an option has a right and no obligation with regard to buying asset in the contract. When you are long on equity option contract:2 min · video