Let's begin this module by understanding the basics of derivatives and their uses.
This chapter takes a look at how the futures and forwards market run and their development over the years in India.
Spot price, futures price, futures contract, mark-to-market, lot size.. confused with these terminologies! You won't be after reading this chapter.
Many traders prefer futures trading over trading normal stocks because of two major benefits. Leverage and risk mitigation. In this chapter, we will talk about leverage.
In this chapter, understand what Mark-to-Market is and know when you can face a margin shortfall.
Understand the importance of Open Interest, which can be interpreted as a barometer of the overall active money in a particular product.
Not only futures allow you to speculate on an asset’s direction on both sides, up and down, they also offer leverage benefit. Here's how you can calculate the margin you are getting on this position.
We dig deeper into derivatives instruments in this chapter with the stock and index futures.
In the concluding chapter of this module, we learn about a risk mitigation strategy called hedging using futures.