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 are DERIVATIVES?

Derivatives are financial instruments without any independent value. Their value is derived from underlying assets such as index, stock, commodities bullion or currency. For example, a derivative of ITC share will derive its value from the share price (current market price) of ITC. In derivatives trading, the contract is traded and not the underlying asset.

What are the advantages of derivatives trading?
Derivatives act as a good hedging tool against price volatility. You can take a high exposure on a stock or security by paying a small margin. For example: If the stocks are priced at Rs 10 lakh and you have only Rs 2 lakhs in hand, this product will still help you take a position. Derivatives offe...
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What are the different types of derivatives?
Futures: In futures trading, it is the owner responsibility to buy or sell a contract at a pre-defined time and price. Here, there are standard conditions to follow. Forward: It is the owner’s responsibility to buy or sell a contract at a pre-defined time and price. However, it the conditions...
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How do Futures Contract work?
Futures Contract is a contract to buy or sell pre-defined quantities of an instrument at a specified price and time. Future contract has standardised conditions such as price, quantity and time. The owner of the contract has the obligation to buy or sell in future. Price is determined by supply and...
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