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VISMINDIA – Institute of Financial Market provide classes for educational purpose with a view to create skilled professionals in Stock Market, Currency Market and Commodity segment.

Our students are well placed in broking houses, Research houses, as Dealers, Portfolio Managers, Wealth Advisors, Advisors, Technical and Research Analyst, Relationship Manager and are promoted earlier than their colleagues in Middle management Levels as ASMs, BDMs, RSMs.

Derivative Analysis Classes

Now a days, new trader’s think that future and option is instruments where they can easily make money in a very short term. But in Reality, it very hard to make money in future and option segment if you don’t have proper knowledge about future and option. If you want to expert in future and option segment, you should clear your view in market and know all the strategies which we implement in stock market to control risk in stock market.

VISMINIDA, trained our students how to control emotion in stock market, how to use strategies in different situation to control risk in stock market specially in future and option segment.

We will Cover the following topics in Advance Derivative Analysis.
  • Introduction of Derivative Market
  • Index
  • Future and Option (Call and Put)
  • Future and Option Terminology
  • Pay off Chart for Future and Option Contract
  • Greek and its Uses
  • Option Chain Analysis
  • Arbitrageurs Strategies
  • Bull and Bear Market Strategies
  • Range-Bond Markert Strategies
  • Event Base Strategies
  • Strategies with Equity
  • Algo Strategies – BOX, 121, 1331, 1221, 143, 253, 495 and Ratio

As a Trader, you must know what is Future and Option and why we trade in Future and option (Derivative) segment?

What is Derivative (Future and Option)

Future and option are derivative products in the stock market. When two parties make a financial contract, where they agree to buy or sell the underlying asset at a agreed price on a specific date (Expiry Date). The reason for making this contract to hedge the risk involve in the stock market.

Uses of Derivatives

Uses of Derivatives include:

  • Generating option ability
  • Providing leverage facilities
  • Hedging risks in the underlying
  • Obtaining exposure for the underlying assets
  • Switching asset allocations between the different classes of assets
  • Speculation and generating profits

Underlying in Derivatives

  • Stocks/ Shares/ Equity: A share is an indivisible unit of capital that expresses the ownership relationship between the shareholder and the company.
  • Currency: It is a medium of exchange for goods and/ or services. It is the money in the form of coins or paper notes which is usually issued by the government and generally accepted at its face value.
  • Commodity: It is a basic interchangeable good which can be used with other goods of the same type.
  • Interest Rate: It is the amount of interest due per period, as a percentage of the lent, deposited, or borrowed amount, also called the principal amount.
Advantages of Derivatives

Non-binding Contracts

When an investor invests in the derivative contracts in the open market, it is considered that he is purchasing the right to perform it. However, there is no obligation on him to perform its option. Therefore, there is an advantage of non-binding contracts and it offers a good deal of flexibility in performing the investment strategy.

Leverage Returns

Investors become capable of making extreme returns that may not be possible with primary investment instruments like stocks and bonds. Unlike stocks, when investors invest in the derivative markets, it does not take a long period of time to double the money.

Advanced Investment Strategies

Financial engineering is an entire field based on the derivative market. They make it possible to create multifaceted investment strategies by the investors to their advantage.

Disadvantages of Derivatives

The derivatives market also comes attached with a set of its own disadvantages. Following are the drawbacks of the derivative market:

Overpriced Options

The derivatives are not easy to value as they are derived from other securities. Besides, the derivatives market is not as liquid as the stock market and there are not many “players” as well. Hence, there is much larger bidding which results in price increment.

Time Restrictions

The prime reason for the derivatives market to be risky for the investors is that they have a specified contract life. After their life expires, the contract becomes of no use.

Complexity

Most people are not aware about the complexity of the derivatives market. Hence, it fosters the scam actors to utilize this weakness and use the derivatives to build enticing schemes to take advantage of both the professional and non-professional investors.

Legalized Gambling

Due to the nature of trading in financial markets derivatives are criticised for being a type of legalized form of gambling as it is very much similar to the other types of gambling activities.

All Courses

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Stock Market Basics

5 Rating

If you want to enter in any field, first thing is that you must know the basic part of it.

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Advance Technical Analysis

5 Rating

Technical Analysis is based on the assumptions that all

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Advance Derivative Analysis

5 Rating

VISMINIDA, trained our students how to control emotion in stock market

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Intraday Trading

5 Rating

Fundamental Approach analysis share prices on the basis of economic, industry

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Nifty & Bank Nifty Expiry Strategies

5 Rating

Nifty, Bank Nifty, MidCP-Nifty, FinNifty in NSE and Sensex and BankEx in BSE are the most popular

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Fundamental Analysis

5 Rating

Fundamental Approach analysis share prices on the basis of economic