TRADING STRATEGIES FOR DERIVATIVES MARKET

There are eight basic strategies of Index Futures trading: Staking Too Much Money management is the key to real success too many traders risk far too much of their trading pot on each trade, looking for the big win rather than gradual and controlled growth through smaller more manageable trades. Discuss this Article Post your comments. The strategy selected must fit within the parameters of the trading system. Wardle Last Modified Date: Dana DeCecco Edited By:

Course Duration: 3 months for the full Options & Options Trading Strategies Course. (1 month for Futures, 1 month for Options and 1 month for Derivative Trading Strategies. Extra session to revise & reinforce concepts & practicals will be conducted). Venue: BIC Office, 45 Netaji Road, Fraser Town, Bangalore –

10 Options Strategies To Know

Investors also use derivatives to bet on the future price of the asset through speculation. Derivatives can be bought or sold in two ways: OTC derivatives are contracts that are made privately between parties, such as swap agreements, in an unregulated venue while derivatives that trade on an exchange are standardized contracts. There are three basic types of contracts: Options are contracts that give the right but not the obligation to buy or sell an asset.

Swaps are derivatives where counterparties exchange cash flows or other variables associated with different investments. Parties in forward and future contracts agree to buy or sell an asset in the future for a specified price. The purchaser's profit or loss is calculated by the difference between the spot price at time of delivery and the forward or future price.

These contracts are typically used to hedge risk or to speculate. The use of a derivative only makes sense if the investor is fully aware of the risks and understands the impact of the investment within a broader portfolio strategy.

A Quick Review of Terms Derivatives are difficult for the general public to understand partly because they have a unique language. Trading Derivatives Derivatives can be bought or sold in two ways: For the market participant seeking the next level of knowledge, proficiency and sophistication in the markets.

This is an Advanced Course and through understanding of Spot and Options concepts is required to benefit fully from this course. We will cover several strategies. One or the other strategy will always work whatever may be the state of the market. Understanding, selecting and properly implementing the correct strategy is the key to success in Options Trading. Learn to make money in all market conditions: To achieve this goal, you will necessarily need to gain an "Inner Understanding" of the markets, a superior ability to predict market movements in advance and benefit from the same by taking highly profitable positions in the markets.

We have just completed a course, Contact Us to let us know of your interest and we shall keep you updates about the next course. Interested in this course? Click Here to Register your interest in any of our courses. You can participate in the course in 2 ways: Integrated Courses with Special Discounted Fees: Participants may also register for individual modules as above.

Most of them also take trading positions in the Derivatives markets and share their experiences - both the profitable and loss making ones. Why should I learn Derivatives, especially, Options? I am talking about that "Inner Understanding", not just bookish knowledge. And they are ones who make the big money, the big returns. IF you wish to be in this elite group of people who have this superior knowledge, you MUST have an inner understanding of Options.

Participating in this course will provide that big impetus to you in achieving your goal of superior knowledge and understanding. The Integrated Course Derivatives Course is a 4month course and it is quite possible that you may miss a class or two. And the question many have is "How will I make up if I miss a class? Learning Options is a slow and steady process. Therefore, it should not be an issue to catch up.

How Derivatives Can Fit into a Portfolio

2 AGENDA Definition of Derivatives Origin of Derivatives Basic types of Derivatives Benefits of Trading Derivatives Trading Strategies 2 3 Definition of Derivatives 3 4 Definition of Derivatives Derivatives are financial instruments which are derived from some underlying commodity or asset. Different Strategies of Index Trading: An investor having a portfolio of scrips can use index futures in an attempt to reduce his portfolio risk. As an owner of the scrip, the investor is exposed to firm specific and market specific risk. Option trading strategies: A guide for beginners Options offer alternative strategies for investors to profit from trading underlying securities. Learn about the four basic option strategies for beginners.