Basic Program on Derivatives


To provide knowledge about the functioning of derivatives markets, the features of various products, the classification of products, the regulatory framework and the margining mechanism.

Nature of financial derivatives including futures and options
Characteristics of derivatives, Underlying assets (Equity, Bonds/Loans, Foreign Currency, and Commodity) Need for derivatives, Types of derivatives and comparison between them, Forwards/ Futures/ Options, Participants in the derivatives market (Hedgers, Speculators, Arbitrageurs)

Principles of trading and hedging with Index Futures
Terminology - Spot, future price, contract specifications, contract cycle, expiry date, settlement date, basis, mark to market, Contract specification for BSE Sensex, Tick size, Types of orders, Trading strategies, Hedging Strategies, Initial, Maintenance Margins, Executing and Clearing, Execution, Matching confirmation, Clearing Mechanism, Settlement, Settlement price, Settlement cycle, Cash v/s Physical delivery, "Open interest" and "Trading volumes"

Principles of trading and hedging with Options
Terminology - call, put, writer, buyer, premium, intrinsic value, time value, expiry date, settlement date, strike price, ATM, OTM & ITM, The Greeks - (Delta, Gamma, Theta, Vega)

Risk Management Systems and Procedures
Types of risks (Counter-party or credit risks, Market or price risks, Liquidity risks, Legal and regulatory risks, Operating risks), Risk identification and measurement, Methods of risk control (Position limits, VAR, Margins, Operating Procedures and systems etc.), Separation of trading, settlement, accounting and risk control functions, Internal control structure and Management Information System, Regulatory and external reporting.

Participants attending the entire course shall be eligible to receive Participation Certificate from the BSE Institute Ltd.

Derivatives Dealers, Stock Brokers, High Net Worth Investors, Custodians, Mutual Funds, Portfolio Managers, Insurance Companies, Banks, Financial Institutions and Management Students.

2 days
10.00 am to 5.30 pm

Rs. 7,000.00 + Applicable Service Tax per participant inclusive of tuition fees, and (morning / evening) refreshments only.

For further details regarding contents,