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In Derivatives

Futures Trading Made Easy: Future & Options Trading Course

  • Basic
  • English
  • 1241 Learners
  • Validity: 3 Years

Futures and Option Trading Course Highlights

  • 2+ hours of recorded content
  • Self-evaluation Tests
  • Certificate of Completion

Introduction

When you talk about markets, you must know that risk & return are directly related to each other. The higher the return, the higher the risk associated with it & vice versa. So if you are someone expecting higher returns & are ready to take higher risk, trading in Futures & Options is something you may be looking for.

What makes Future trading different is the extent of leverage of margin that you get, which may not be available in the case of stocks. If you are able to make the most out of the exposure you get in the futures market, you will surely make gains.

Apart from risk-return, you must also be very clear about the fundamental concepts, technical charts & patterns, market movements, trading strategies etc. So it is very important to learn futures & options.

You should remember that as much as you can benefit from the upside, as much or even more can be the loss from the downside. To gain this understanding of how to make the most of the upside & how to minimize the effect of the downside on your trades, you must learn futures and options trading.

Please find below the topics overview of the Futures Trading Made Easy: Future and Option Trading Course:

Topic 1: Introduction to Derivatives

  • You will first delve into the intricate world of financial derivatives. Using Gold as an example, you will thoroughly understand the derivatives market in this section.
  • Explore several situations to understand the implications of this contract for the buyer and seller. 
  • Learn about its types, including Futures, Forwards, Swaps and Options.

Topic 2: Understanding Forward Contracts

  • You will now understand what forward contracts are. 
  • Understand the advantages of forward contracts using a real-world scenario involving a wheat farmer and an FMCG firm.
  • Look at the limits of forward contracts, such as their customisation, lack of regulation, and counterparty default risk. 
  • Compare Over the Counter (OTC) instruments to standardised, exchange-traded goods like futures.
  • Learn the liquidity issues associated with OTC instruments.

Topic 3: Basics of Futures Contracts

  • In this topic, you will understand the concept of futures contracts and how they differ from forward contracts. 
  • Understand the structure of organised and regulated futures trading. 
  • Explore the difference between buying or selling futures contracts and buying or selling stocks directly. 
  • Explore the unique characteristics of futures trading compared to traditional equities investing. 

Topic 4: Futures Terminologies

  • You will now look at key terminologies related to futures contracts, using examples from the NSE website. 
  • Gain knowledge of the various types of instruments, their expiry dates, the underlying values, the lot sizes, the open interest, and the basis (the price difference between futures and spot). 

Topic 5: Margin & Mark-to-market

  • You will now delve into the concept of margin and mark-to-market.
  • Discover how the margin money is blocked in the trading account and how margin needs are calculated depending on prospective losses. 
  • Understand the concepts of exposure margin, span margin, and the impact of margin calls. 
  • See how daily profits and losses are calculated for open futures positions based on price movements using a hypothetical situation. 

Topic 6: Delivery and Settlement: 

  • Here, you will look at how to exit long positions in the futures. 
  • Understand cash settlement and daily mark-to-market adjustments for index futures and physical delivery.
  • Understand the implications of increased margin requirements for stock futures.

Topic 7: Payoff and Leverage

  • Understanding the risks and rewards before entering into such contracts is essential for beginners. Here, you will see why a futures contract is called a zero-sum game.
  • Understand the concept of leverage, which lets us manage a bigger investment with a comparatively smaller amount of funds. 

Topic 8: Volume, Open Interest & Rollover

  • Here, you will learn about volume and open interest. By analysing these measures, traders may assess market participation, liquidity, and potential trends. 
  • Learn how to analyze the open interest data.
  • Understand the relevance of rolling over contracts before they expire.

Topic 9: Participants of the Derivatives Market

  • Moving ahead, you will learn about the various market participants, including hedgers, speculators and arbitrageurs.

Topic 10: Pricing of Futures

  • You will first understand the cost of carry model, which calculates futures prices by considering interest rates and dividends. 
  • Look at another formula that uses continuous compounding. 
  • See how market expectations affect futures prices, leading to concepts like contango and backwardation.

Topic 11: Futures Strategies

  • In this futures trading course, you will learn futures trading strategies such as Bull Calendar Spread and Bear Calendar Spread.

Topic 12: Resources

  • You will also learn how to analyze derivatives data using StockEdge and the NSE website.

Topic 13: Income Tax on Futures and Options Trading

  • In this section, you will explore the basics of taxation on F&O Trading.
  • Learn how to determine the tax on F&O turnover.
Anirudh Saraf

About the Trainer

Anirudh Saraf

385714 Learners 3732 reviews

He is a practicing Chartered Accountant with 15+ years of post-qualification experience. He is also the founder and proprietor of Saraf A & Associates, Chartered Accountant, Kolkata. He has core expertise in audit, taxation, F&A consulting, outsourcing, teaching, and training.

 

 

 

 

 

Know More

What Will You Learn in This Futures and Option Trading Course?

  • Understand the basics of derivatives and its various types, including Futures, Forwards, Swaps and Options.
  • In-depth knowledge of forward and futures contracts and various participants in the derivatives market. 
  • Comprehensive understanding of risk-reward and payoff, analyzing volume and open interest, and determining the futures contract price.
  • Develop effective strategies such as bull and bear calendar spreads for futures markets.
  • Analyze market data using NSE Options and StockEdge to make informed decisions.
  • Explore the concept of taxation and its implications on F&O trading.

Topics Covered

  • Basics of Derivatives
  • Introduction to the Futures
  • Futures Pricing
  • Different Types of Futures Strategies
  • Tax Implications of Futures Contracts

Intended Participants for This Futures and Option Trading Course

Aspiring Traders, Retail Investors and Finance Professionals looking to gain a conceptual understanding of futures trading are welcome to join the course.

Get Certified

Enhance your career prospects with a Elearnmarkets certification!

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Under this course, the participant will be required to appear for the online examination hosted on the website of Elearnmarkets.com. Please note that the participant will get the Certificate of Completion after successfully clearing the online examination.

 

Procedure:

  • The student has to appear for the Certification Test hosted on the website itself under “Test >> Certification Test”.
  • In case, the student does not clear the Certification Test, they can re-appear the same after 8 hours.
  • In case of any further assistance, drop in an email to support@elearnmarkets.com or call: 9051622255

Other Details:

  • Duration: 30 minutes.
  • Pattern of questions: Multiple choice-based questions of 2 marks each.
  • Qualifying marks: 60%

Certificate of Completion:

After successful completion of the online examination, participants need to go to the "My Certificate" tab in Student Dashboard to download the certificate for the respective course.

Futures Trading Made Easy: Future & Options Trading Course cover image
Anirudh Saraf

Instructed By

Anirudh Saraf

999

*incl. of Taxes

Frequently Asked Questions

Trading futures is sometimes seen as riskier than trading stocks due to variables such as more leverage, increased market volatility, and the possibility of margin calls. Significant leverage is used in futures transactions, which increases both profits and losses. The risk is increased by the possibility of quick price changes in the futures market due to its sensitivity to various reasons. In addition, traders might have to add more money to cover losses due to the likelihood of margin calls in futures trading, which raises perceived risk in comparison to stock trading.
Purchasing or selling standardized contracts that obligate parties to exchange a certain item at a fixed price on a future date is known as futures trading. Traders may hedge against risk, speculate on market trends, or acquire exposure to a range of assets. Standardized contracts with daily profit/loss markings are traded on regulated exchanges. Margin accounts are used and contracts may be closed before delivery, resulting in either a cash settlement or a physical delivery.
Login to www.elearnmarkets.com with your registered email id. >> Go to My Account and click on “My Courses”. >> Click on "Course Name"
To post your queries in the discussion forum, follow the steps: Go to the video or the class recording in which you are having doubts >> Click on the Ask a Question icon >> A dialog box will open. Type the topic in which you are having doubt and the specific doubt you are having. Please provide as many details as possible. >> Your query will be answered by our experts soon.
Yes, this is a certification course with lifetime validity.
After successfully completing the examination, participants need to go to the "My Certificate" tab in Student Dashboard to download the certificate for the respective course.
Please reach Team Support at 9051622255. You can alternatively write to us at support@elearnmarkets.com
Please reach program advisor at 9748222555. You can alternatively write to us at info@elearnmarkets.com
Futures trading involves contracts to buy or sell a specific underlying asset at a predetermined price. Whereas, options trading is defined as the buying and selling of contracts that provide the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific timeframe.
Determining whether futures or options are more profitable depends on various factors, including market conditions, trading strategies, risk tolerance, and individual expertise. Futures offer high leverage and direct exposure to price movements, while options provide flexibility and limited risk.
No, futures and options trading are risky instruments due to leverage, market volatility, counterparty risk, lack of understanding, and the potential for overtrading.
Futures and options (F&O) trading and intraday trading are not the same. F&O trading involves contracts derived from underlying assets, used for various purposes like speculation and hedging. Intraday trading, however, focuses on buying and selling within the same trading day to profit from short-term price movements.

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