Professional Documents
Culture Documents
Indian Options Market
Indian Options Market
Indian Options Market
OPTIONS
MARKET
By Derivative Trading Academy
* About Derivative Trading Academy
Derivative Training Academy Pvt. Ltd (An ISO 9001: 2015 Certied Organisation) is one
of the pioneers in Stock markets that brings industry domain experts which believes in
imparting the nest trading education with a real-time interactive environment & LIVE
Trading session. We aims to promote & delivers best quality trading platform for options
all over India.
Hence, we never ever try promote the tips; but perhaps we help the trader to remove
prediction & relying on the tips professionally trained by the best F&O trainers in India. To
have a perfect solution, DTA has designed advanced option trading cours online as well
as ofine, where the new entrants / traders will learn & practice the desired requisite skills
to identify, assess and execute trading opportunities in options. We help the option trader
across India to create, manage and evolve various strategies and produce consistent
prots from Options Trading
* Media Appearance
Example:
Futures
Options
Swap &
exotic contract
3
* Derivative Volumes: Story of a Mature Market
4
The above chart shows average daily cash and derivative market
volumes in India. While cash market volumes have stayed in an
average range of 13k - 16k Crores a day. Derivative market volumes
have jumped from 50k Crores to 250k crores. The ratio of
derivatives volume to cash volumes has moved up from 4 to 15 in last
7 years.
5
But the 2008 debacle explained the hazards of crazy punting or
leveraging excessively via futures. So, as a stumble down in life
makes an individual mature, this tumble made the traders matures
and they moved towards options. Specially, index options which are
75% of market volumes. The large towers in the chart above. One
can clearly see than transition from futures to options.
* Exchange Rules :
Ÿ Lot size : predened for each scrip, with minimum contract value at Rs. 5
lakhs.
Ÿ Expiry : Last Thursday of each month
Ÿ A new series comes into existence on the immediately succeeding day.
Ÿ Tick size is 0.05.
Ÿ Contract Cycle : 3 months. For Nifty options, contracts are available upto 3
years.
Ÿ Daily Settlement price is the last half hour volume weighted price. Final
settlement price is last half hour volume weighted price in cash market.
Ÿ Currently all contracts are cash settled
Ÿ Initial Margin
* Paid to Clearing Corporation as performance guarantee -
oneday look ahead
* Paid by futures trader and option seller,
* NOT paid by option buyer – he only pays option premium
* Calculated using SPAN (Standard Portfolio Analysis of Risk)
* Generally 20% in case of stocks and 15% in case of indices
Ÿ Exposure Margins & Additional Margins are leviable by exchange,
generally at 5% - 6%
Ÿ Mark-to-Market : daily MTM of position
6
Day Buy / Sale Qty LOT MKT Price Closing Price MTM
Options are :
Ÿ A specied underlying
Ÿ At a set price
7
*
Ÿ
Basic terminologies:
Option Premium:
8
* Topology of Options:
9
* Call Options Vs Put Options
10
Derivative Trading Academy
In recent years, the trading volume of derivatives has been increased to 75% more as
compared to previous decade. The traders who were trading in Intraday, Investing in
long term equity, commodities, Positional Trading, Swing Trading are now looking to
trade in Option market as a new Ball Game together. Derivative Trading Academy is one
of India’s Leading F&O Institute and has been awarded with some of the nancial giants
& widely recognised by CNBC, Bloomberg, Reuters, SEBI, BSE & NSE leaders.
Incepted in the year 2014 with ofces in Mumbai, Banglore & New Delhi, Derivative
Training Academy Pvt. Ltd (An ISO 9001: 2015 Certied Organisation) is one of the
pioneer name in the eld of Stock markets that brings industry domain experts which
believes in imparting comprehensive training on Option Trading Courses with a real-
time interactive environment & LIVE Trading session. Derivative trading Academy aims to
promote & delivers best quality trading platform for options. However, we never ever try
promote the tips; but perhaps we help the trader to remove prediction & relying on the
tips professionally trained by the best F&O trainers in India. To have a perfect solution,
DTA has designed advanced option trading course, where the traders will learn &
practice the desired requisite skills to identify, assess and execute trading opportunities in
options. We help the option trader across India to create, manage and evolve various
strategies and produce consistent prots from Options Trading.
To know More,
Kindly get in touch with our EC today!
(+91) 976-994-3216
or you can mail us at:
info@derivativetradingacademy.com
Visit us at : www.derivativetradingacademy.com
Follow us :