Futures & Options — Overview

Yes, Ooohhh Derivatives

Feeling like Simpson? Then you should be at BIC !

Come for the FREE Introduction to F&O and our course and see if its exactly what you have been looking for!

Futures & Options are two types of Derivative instruments that are traded on stock, commodity and forex markets. They are contracts which derive their value from what is called the underlying; i.e. the value of the contracts is based upon something else. To give a very simplistic example: the value of the Title Deed of a house is derived from the value of the house.

Derivatives allow investors, risk-takers and risk-avoiders to take various positions in the market that fulfil their requirements. They are very useful instruments that can be used and combined to give various outcomes: multiply profit potential (and therefore the risk of higher losses also), reduce the fluctuations on already existing investments, provide risk free returns and more.

Derivatives may not be easy to understand for a few people but every serious and committed investor and trader must know about derivatives, how they work and how they give you a inside x-ray vision of the market. By virtue of this x-ray vision, one can have sophisticated positions in the market that can ensure you have greater profits and lower losses.

This course is not for the casual investor and it is recommended that only serious and committed market participants take this course. It is detailed, rigorous and goes to great depths so that the participants achieve a level of inner (and hopefully intuitive) understanding of Derivatives; which is important if one wants to use them successfully.

We have a Special Integrated Course Offer that combines this course with the Derivatives Trading Strategies Course. Details are below.

You may also like to look at the Footnote below for some food-for-thought issues on Derivatives.

IMP Note: We have only ONE BATCH of our F&O Course each year.

  Course Contents

NOTE: The list below is NOT the Sessions wise list. It only indicates the topics that will be covered.

  Futures:  

1. What are Futures and their history?  1st Session:   Sunday 17 Aug  Please call us on +91 93419 67573 to let us know if you are interested in participating.

2. How are Futures contracts constructed?

3. Futures contracts in various global markets.

4. Futures in India: details of how they work in India.

5. Premium & Discount: what are they, how do they arise and what is their significance.

6. Open Interest: what is it, how does it arise, how to analyse and it to predict price movements.

7. Expiry and Rollover: what they are and their significance.

8. How to trade Futures to increase profits.

9. How to use Futures to protect underlying investments.

   Options:      FREE Introductory Session on Sun, 2 Nov 2014.     

Note: EACH of the points below have several sub-points that dwell into the details of the topic.

1.  What are Options and their history:  1st Session:  Sun, 2 Nov . Please call us on +91 93419 67573 to let us know if you are interested to participate.

5.  American and European.

6.  Strike Price.

7.  Expiration of Option contracts.