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Derivative Trading

How about availing 100% service value while utilizing only 10% capital? That’s the beauty of derivative market. Derivative instruments derive their value from underlying assets which can be Equity, Indices, Currency or Commodity. In derivative market we can trade full contract value by utilizing very small amount as margin. Traders generally use derivative contracts to earn maximum rewards out of available opportunities by trading or to mitigate their risk by using hedging, arbitrage strategies. With the availability of flexibility to design any strategy and play either side of markets, derivative market becomes very interesting for traders or hedgers.

Derivative contracts have pre-defined margin requirements and expiry dates. They are held at a recognized stock exchange where exchange acts as mediator and facilitator. Derivative contracts are of two types – Futures and Options also known as F&O. Future contracts are the one in which both buyer and seller exercise contracts by using a nominal amount called as margin. At the end of the day the account gets adjusted with notional profit/loss called mark-to-market and if the amount drops below minimum margin requirements the account holder is required to deposit balance to continue position or else the contract will be squared off. The contract will expire on squaring off by client or on maturity date, whichever is earlier.

Option contracts are like insurance contracts where one pays premium to cover against the adverse movement or else it expires on maturity date, in financial market it is called Hedging. To make it more interesting option contracts also provide us the platform to trade either side of markets and they are the cheapest instrument available to enter the market. Option contracts are available with pre-defined strike prices and they are of two types – Call options and Put options. If someone is bullish on market then there are two ways – either Buy Call Option or Sell Put Option and same way if someone is bearish on market then either they can Buy Put Option or else Sell Call Option. If we buy an option then loss is limited to premium paid only and profit potential is unlimited. If we sell an option then profit is limited to premium received only and loss potential is unlimited.

Derivative Trading Enquiry

Why invest with FINDOC?
  • We are the members of National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange and provide depository services through NSDL.
  • Our trading platform is available through Mobile app, Desktop, Call-N-Trade.
  • Access technical charts and tools on our trading platform.
  • With our Algo trading platform, you can trade in derivative segment with your own Strategies.
  • We focus on capital preservation of our clients with attractive returns from every juncture of the market.
  • Market updates are available via daily, weekly newsletters and research reports on our site.
  • Our website provides the real time rates of the market with news updates.
  • Findoc provides their client with anytime web enabled back office facility.
  • Impeccable one stop shop for all investment solutions depending upon client’s financial requirements.