Equity Derivatives

Equity Derivatives are instruments whose values are partly derived from one or more underlying equity asset class. Futures and Options are the most commonly-traded equity derivatives products. You can engage in equity derivatives trading to hedge risks associated with long or short positions, or to speculate on the price movements of stocks or indices.

Offerings

Equity Options Financial contract with an option to buy or sell stocks at pre-set price & date

Equity Futures More dynamic option to buy and short sell stocks without owning them

Benefits of Equity Derivatives

The following are the ways in which you can benefit by trading in equity derivatives:

  • Hedging and Risk Management – Analogous to purchasing an insurance policy, you can use this mechanism to reduce the risks of adverse price movements in stock prices through equity derivatives trading.
  • Leverage – When trading in equity derivatives products, this mechanism allows you to gain greater exposure by investing smaller amounts.
  • Arbitrage – You can make profits by exploiting the mispricing of the same stock in equity derivatives markets and cash market.
  • Liquidity – The continuous flow of information and transparency due to price discovery enhances liquidity in the equity derivatives market.
  • Low transaction costs – The transaction costs are low as equity derivatives trading is based on margin money.

How to Trade Equity Derivatives?

You can now use any of our online or offline multi-trading platforms to invest in equity derivatives products from your comfort zone. Follow the below mentioned procedure to make trading in derivatives much easier for yourself.

  • ITS: Now engage in equity derivatives trading in an instant by logging in by using = our mPowered trading platform - an easy to navigate and speedy transactional channel.
  • Mobile App: You can trade in equity derivatives on the Go with our Mobile Trading App on your Android, i-Phone or i-Pad. Give a miss call on on 08010945114 to download the app.
  • Call N Trade: Never miss out on trading opportunities in equity derivatives products. Call N Trade using our Centralised Dealing Desk, call 33553366 (Prefix STD Code) and speak to our trained telebroking executives to place your order at no extra cost.
  • Visit our nearest branch. Click here to find our nearest branch.

FAQs

Get all your queries answered here

What is a derivative?
A derivative is a contract between two or more parties to buy and sell an asset at a predetermined price and time in the future. All derivatives are secondary financial instruments whose value is derived from underlying primary assets like equities, currencies, commodities market indices etc. They c...
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What is a Futures Contract?
It is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. One needs to have sufficient margin in his account to create a future position. It can be either in the form of cash or collateral. A margin is charged to both the buyer and the seller ...
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What is an Option?

An option is a financial derivative that represents a contract sold by one party (the options writer) to another party (the option holder)

The contract offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price (strike price) during a certain period of time on a specific date (expiration date).

Why should one trade in Options?
Unlike in the case of futures where the loss one can incur is unlimited. If one buys an option, the maximum loss he will have to incur in case the trade goes against him will be the premium paid, while the profits he can earn is unlimited. When one sells an option, the possible loss incurred can be ...
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