The Indian capital market has witness impressive growth and qualitative changes, especially over the last two decades. In the fifties, sixties and most of the seventies, it was in a dormant stage when the investors were generally not familiar with, or inclined towards, the corporate securities. During this time, [...]

(Contd of Derivative Trading II )

12. What is the contract cycle for Equity based products in NSE ?
Futures and Options contracts have a maximum of 3-month trading cycle – the near month (one), the next month (two) and the far month (three), except for the [...]

( Contd of Derivatives Trading I )

6. What are various types of derivative instruments traded at NSE?
There are two types of derivatives instruments traded on NSE; namely
Futures and Options :
Futures : A futures contract is an agreement between two parties to buy or sell an [...]

FAQ’s

1. What are derivatives?
Derivatives, such as futures or options, are financial contracts which derive their value from a spot price, which is called the “underlying”. For example, wheat farmers may wish to enter into a contract to sell their harvest at a future date to eliminate the risk of a [...]