Certificate Program on Derivatives

Program

This program has been designed primarily from the trading perspective. It is meant for practitioners and participants who have prior knowledge of the basic functioning of the derivatives instruments. Participants who have gone through the BSE Basic Program on Derivatives are also eligible for this Program.

This program broadly covers Futures and Options. It starts with a quick orientation of the basics and moves to simulated strategies and actual derivatives technical on volatility and Greeks.

The endeavour is to give the participants an insight into the market dynamics and equipping them with the knowledge to price their derivative securities. These skill enables identification of arbitrage opportunities and obtain an expression to the trading view. The Program equips the participants with a series of combination strategies keeping a tab on the implementation costs.

Derivatives fulfil the market need for risk management. The Program also illustrates hedging strategies in lucid detail taking actual cues from experts who consult fund managers regarding hedging effectiveness of their portfolios

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, Trading volumes & Mark-to-Market Margining

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.

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.

Strategy:
Futures: Stock and Index Futures, Basket - Pair Trading, Basis Trading, Spread Strategies; Exotic Strategies; Covered Call Strategies, Greeks: Delta Neutral strategies, Delta - Gamma neutrality, Delta v/s Time; Delta v/s Volatility; Gamma v/s Time and Volatility, Vega, Theta and Rho; Volatility Trading Strategies.

Synthetics:
Synthetic Call and Put strategies, Synthetic Futures Strategies.

Arbitrage and Hedging:
Futures - Futures and Cash - Futures; Options Arbitrage

Hedging:
Types of Risk: Basis Risk, Systematic and Unsystematic Risk Utilities of a Hedge for Mutual Funds Cross Hedging; Protective Put, Fencing Strategies, Portfolio Hedging Strategies, Tailing the Hedge - Case - Live Portfolio.

Forecasting using Options and Futures: Put - Call Ratio; Volatility Forecasting, Forecasting Strategies: Open Interest - Volume and Price Patterns, Volatility Index

Plan for intraday and positional trade.

  • Market dynamics


  • How to find new trade with intraday DATA.
  • Selection of scripts ( Volume, Impact cost )
  • Beta ( Stock , Portfolio )


  • Live forecasting with derivatives indicators and technical charts.
  • Find BTST /STBT trades.
  • EOD study. And Q & A


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

    Brokers, Sub- Brokers, Dealers, Traders, Derivatives Research and Sales Teams, Foreign Institutional Investors, Financial Institutions, Fund Managers, Corporates, Equity Analysts, Practising Professionals, High Net worth Investors, Bankers, Students and Investors.

    Graduate (10+2+3 or 4) with minimum 50% and 45% for SC/ST candidates from a UGC recognized University

    5 Full Days (Saturdays & Sundays)
    10.00 am to 5.30 pm

    Rs. 16,500.00 + Applicable Taxes per participant inclusive of tuition fees, reference material and (morning / evening) refreshments only.

    For further details regarding contents,
    E-mail: training@bseindia.com