Certificate in Derivatives Market (Futures & Options)

Derivatives trading

Futures & Options trading is by very nature very risky and equally profitable. Most people burn their fingers and lose money while experimenting with this trading.
We start from scratch and help you understand margin based Futures Trading and premium based Options Trading. You understand the inherent risk, the safe strategies and calculated speculative strategies to benefit from F & O trading.
The whole objective of the program is to deliver the practical knowledge of F & O Trading , after the program you are able to confidently trade in Equity Futures &Options, Nifty Futures & Options.

What is the broad Coverage in Certificate in Derivatives market Program?

  • Overview of Derivatives :
    We start from the basics of derivatives covering market participants, types of derivatives market, significance of derivatives and risk faced by participants in derivatives
  • Index; The Barometer of Economy :
    Derivatives market is the place where one can trade in Index such as NIFTY, SENSEX among others. Index is considered as the barometer of economy since it is made up of stocks from diverse industrial fields. Under this part we cover significance, types and attributes of an index, Index management and application of Indices
  • Forwards and Futures :
    Forwards are OTC traded instruments whereas futures are exchange traded instruments. Candidates will be acquainted how to price futures; pay off charts for futures contract and use of futures.
  • Understanding the Options Market :
    As the name suggests options contracts in derivates market comes with the option to buy or sell but not an obligation to buy or sell. Generally it is believed that Options are those instruments where there is limited possibility of loss with unlimited potential of profits. Is this phenomena correct? We give you the answers in this part covering basics of options, pay off charts and use of options.
  • Money making options trading strategies :
    By using options one can make strategies according to the view of the market. Some of the popular strategies include Straddle, striangle, covered call, protective put, collar, butterfly.
  • Understanding the Trading Systems :
    In derivatives trading one must know how to select stocks for trading, what should be the selection criteria of index for trading, what is the market wise client wise positions limits so that the trader can adjust the trades according without facing the failed trade.
  • Clearing and Settlement system :
    As Futures and Options market are exchange traded markets it is important to know the clearing and settlement mechanism of the exchange and how the trades are cleared right from placements of the order till the execution of the trades and finally the settlements of the trades. Various kinds of margins are required in Derivates segments before once places the order and also during the currency of the trades.
  • Legal, and taxation aspects :
    In India Derivatives is defined under Securities Contracts (Regulations) Act, 1956 and the income is also taxed as per Indian Tax Laws.
Detailed Course outline for Derivatives Course
Part 1: Futures Markets
  • Basics of Derivatives
  • Background of derivatives markets
  • Products in Derivatives Markets
  • Market Participants
  • Introduction to Index, applications of index
  • Futures Terminology; Terms used in Futures Markets
  • Introduction to open Interest
  • Doubt session
  • Understanding Open Interest
  • Interpretation of Open Interest
  • Open Interest as confirming Indicators
  • Types of Positions in Derivatives
  • Pay off Charts in long and short positions
  • Arbitrage
  • Futures to Futures
  • Doubt session
Part 2 Options Markets
  • Understanding the basics of options
  • Options Terminologies: Terms used in Options Markets
  • Composition of Options Premium: Various components of options premium
  • Understanding In the money, out of the money and at the money options
  • Types of Positions in options markets
  • Doubt sessions
  • Profit and loss potential for options buyers and sellers
  • Characteristics of options buyer and seller
  • Detailed analysis of options chain
  • How options chain is useful in gaugingthe market trend and levels of expiry in the market
  • Doubt session
  • Options Delta
  • Options Gamma
  • Options Theta
  • Options Vega
  • Options Roho
Part 3 Options Strategies
  • Construction of Bull call spread
  • Construction of Bull put spread
  • Construction of bear call spread
  • Construction ofbear put spread
  • Covered Call for bearish view
  • Protective put for bullish view
  • High volatility strategies/low volatility strategies
  • Construction ofstraddle strategy
  • Construction ofStrangle Strategy
  • Construction of butterfly strategy
  • Construction of condor strategy
  • Construction of Collar strategy
  • Construction of Calendar spread
ICFM is the exclusive training partner of Bearstreet trading floor, ICFM do not earns any brokerage or incentives from any brokers. ICFM only provides educational and training courses without any brokerage commission arrangements.