
Stock Market FUT & OPT
Course Description
Stock Market Futures & Options (F&O):
Futures:
1. Contractual obligation: Buy or sell an underlying asset (stocks, indices, commodities) at a predetermined price on a specific date.
2. Binding agreement: Parties are obligated to fulfill the contract.
Options:
1. Right, not obligation: Buy or sell an underlying asset at a predetermined price (strike price).
2. Flexibility: Buyer can choose to exercise or let the option expire.
Key aspects:
1. Leverage: F&O trading allows for leveraged positions, amplifying potential gains and losses.
2. Risk management: Used for hedging or speculating on price movements.
3. Expiration date: F&O contracts have a specific expiration date.
Types of Options:
1. Call Option: Right to buy an underlying asset.
2. Put Option: Right to sell an underlying asset.
Course Curriculum
Here's a suggested curriculum for Stock Market Futures & Options (F&O):
Module 1: Introduction to F&O
1. Overview of derivatives
2. Types of derivatives (futures, options)
3. Benefits and risks of F&O trading
Module 2: Futures
1. Futures contracts
2. How futures trading works
3. Margining and settlement
Module 3: Options
1. Options contracts
2. Call and put options
3. Option pricing models (Black-Scholes)
Module 4: Trading Strategies
1. Hedging strategies
2. Speculative strategies
3. Spread trading
4. Options combinations (straddles, strangles)
Module 5: Risk Management
1. Understanding risk
2. Position sizing
3. Stop-loss orders
4. Portfolio hedging
Module 6: Technical Analysis
1. Chart patterns
2. Indicators (moving averages, RSI)
3. Trend analysis
Module 7: Market Dynamics
1. Market microstructure
2. Order flow and liquidity
3. Market sentiment analysis
Module 8: Regulatory Framework
1. Regulatory bodies (SEBI, exchanges)
2. Trading rules and regulations
3. Investor protection
Module 9: Practical Application
1. Case studies
2. Trading simulations
3. Strategy backtesting
Module 10: Advanced Topics
1. Volatility trading
2. Options Greeks (delta, gamma, theta, vega)
3. Exotic options
This curriculum provides a comprehensive overview of F&O trading, covering theoretical concepts, practical applications, and risk management strategies.