Curriculum

I. Basics of Derivatives

A. Basics of derivatives

B. Evolution of derivatives m

C. Indian derivatives Market

D. Market participants

E. Types of derivatives market

F. Significance of derivatives

G. Various risk faced by the participants in derivatives

II. Understanding Index

A. Introduction to Index

B. Significance and economic purpose

C. Types of Indices

D. Attributes of an Index and concept of impact cost

E. Index management

F. Major Indices in India

G. Applications of Index

III. Introduction to Forward

A. Introduction to Forwards

B. Payoff Charts for Futures contract

C. Futures pricing

– Cash and carry / Non-arbitrage model for futures pricing

– Expectancy model of futures pricing

– Concept of convergence of cash and futures prices

D. Basic differences in Commodity, Equity

E. Uses of futures

– Role of different players in futures market

– Use of futures contract as an effective instrument for managing

– Strategies for hedging, speculation and arbitrage in futures market

IV. Introduction to Options

A. Basics of options

B. Payoff Charts for Options

C. Basics of options pricing and option Greeks

– Fundamentals of options pricing

– Overview of Binomial and

– Basics of Option Greeks

– Uses of Options

V. Option Trading Strategies

A. Option spreads and their payoff charts

B. Straddle: market view and payoff charts

C. Strangle: market view and payoff charts

D. Covered Call: market view and

E. Protective Put: market view and payoff charts

F. Collar: market view and payoff charts

G. Butterfly spread: market view and payoff charts

VI. Introduction to Trading Systems

A. Trading Systems, corporate hierarchy, order types and conditions

B. Selection criteria of Stock for trading

C. Selection criteria of Index for trading

D. Adjustments for Corporate Actions

E. Position Limits

F. Using daily newspapers to track futures and options

VII. Introduction to Clearing

A. Clearing Members, their role and

B. Clearing Mechanism and computation of open positions

C. Settlement Mechanism for stock and index futures and options

D. Understanding margining and mark to market under SPAN

E. Risk Management features and position limits

VIII. Legal and Regulatory Environment

A. Securities Contract (Regulation) Act, 1956

B. Securities and Exchange Board of India Act, 1992

C. Important rules and regulation

D. Regulation in clearing & s

E. Major recommendations of

F. Major recommendations of the J R Verma Committee

IX. Accounting and Taxation

A. Accounting of Futures and Options contracts

B. Taxation of Derivative transaction in securities

X. Sales Practices and Investors Protection Services

A. Risk profile of the investors

– Importance of profiling clients in sales process

– Importance of KYC

– Documents required by the investors to trade in Derivatives contract

– Best practices in derivatives sales

B. Investors Grievance Mechanism