Importance of Derivative (Polpularly known as F&O Market) :-

         Derivatives are becoming increasingly important in world markets as a tool for risk management. The presence and role of derivatives in India has been increasing steadily over the years. These instruments are an important component of the overall financial sector strategy. Derivatives have found much of their use in the financial world where their advantages are undisputedly high especially in hedging against risk.

Course Outline Topic:-
• Introduction to Derivatives
• Understanding Interest Rates and Stock Indices
• Futures Contracts, Mechanism and Pricing Forward Contracts
• Application of Futures Contracts
• Options Contracts, Mechanism and Applications
• Pricing of Options Contracts and Greek Letters
• Trading of Derivatives contracts
• Clearing and Settlement
• Regulatory Framework
• Accounting for Derivatives

Options Trading Strategies :-

           There are vast arrays of strategies available for trading options. This module discusses the objectives of these strategies and the conditions under which they are successful. It is advisable to take the NCFM Derivatives Markets (Dealers) Module test which would make you familiar with the basic concepts of the options market, before attempting this module.

Course Outline Topic:-

          • Introduction to Options
          • Option Strategies

• To learn about the various option strategies.
• To understand payoff concepts.
• To understand the objectives and risks of each different strategies.