Futures and Options: Introduction to Equity Derivatives

How You Can Risk-Proof Your Stock Market Investments. . . Derivatives include futures and options and are an indispensable part and parcel of developed financial markets. How derivatives work and how you can benefit from them to protect your stock market investment is the thrust of this book. Highlights: What futures and options are and distinction between the two Futures and options markets: how transactions take place Characteristics of futures and options contracts How futures and options are valued. The book lays particular emphasis on stock index futures, the first risk-proofing tool available to the Indian investor. The author explains both the underlying concepts and procedures in a straightforward manner: How to use stock index futures Features of stock index futures contracts Valuation of stock index futures How to make sense of stock index futures quotations Relationship between spot and futures prices NSE regulations governing stock index futures in India: trading, clearing mechanism, margins, etc. The intriguing thing about derivatives is that you can use them for two completely different purposes: 1. To protect or "insure" the value of your stock market portfolio, or 2. To trade or speculate bigger than ever if you have the stomach for it. Assuming no prior knowledge, both the beginners and market operators will find this an easy-to-understand book to get started in futures and options.