Overview | Derivatives: In Brief
Key Features
- Multi-channel investment option – i-Trade, Tele-trade, directly through dealer
- Access to excellent market research, execution and clearing facilities
- Generate income with low margins requirements and high leverage
- Access to expert options advisers
Who should go in for Futures ? *
Futures give the investor the opportunity to benefit from price fluctuations of stocks and index
- They give you the right to buy or sell shares or market indices at a specified time in the future at a specified price
- Can be traded by a team of certified dealers or online through i-Trade
- Allow you to trade in shares and market indices
- Experienced traders looking for opportunities to speculate on share price movements or movement in market indices
- Investors looking for high exposure to a stock on a smaller outlay
- Experienced futures traders who are looking to manage the risk of price fluctuations
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Key Features
- Multi-channel investment option – i-Trade, Tele-trade, directly through dealer
- Access to specialist options advisers
- Insure against a fall in price of a particular stock
- Generate income by selling or writing options against your existing holding of stocks
Who should go in for Options ? *
Options give you the right but not the obligation to buy or sell the underlying asset. It offers you the potential to profit from share price movements (both rises and falls) without necessarily holding the underlying shares. They can be divided into a call (when you buy the underlying) or put (when you sell the underlying) options.
Buying an option can be regarded as equivalent to taking out insurance - you pay out a premium in advance and if a specified event occurs then that's the time you get paid.
- They can be bought or sold online via i-Trade or directly through a dealer
- They give you the right, but not the obligation, to buy or sell an underlying share at a specific price on or before a specific date
- Can be traded for a small premium, which gives you the right in case of call/put option (obligation in case of writing of any option) to purchase/ sell a pre-determined number of shares at a pre-determined price
- Allow you to generate income by short-selling or writing options against your existing shares
- Are very good hedging instruments
Trading in options is for*:
- Investors willing to take higher risk, looking for greater potential returns over shorter terms
- Investors who have strong views on the market and its future movements and want to take advantage of the same
- Investors who want to insure their current share holdings against potential losses
- Investors who want to generate income from their existing shares
- Investors looking to profit from share price movements without having to own the underlying shares
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How to get started?
Just follow simple 3-step method to start trading in Derivatives. Click here to know more
*Derivatives carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Arihant. Please read the Derivatives Risk Disclosure Document
titled Risk Disclosure Document - NSE (Derivatives Segment) before considering any option transaction. Call your local Arihant office or write to Arihant Capital Markets Ltd, 6, Lad Colony, Indore-452001, Madhya Pradesh, India, for a current copy.
* * Futures and options involve a fair amount of risk, so make sure whether it suits your risk appetite or not.
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