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What are Derivatives?
Derivatives are financial contracts whose value comes from an underlying asset such as a stock, index, commodity or currency. In India, the most traded derivatives are futures and options (F&O) on NSE and BSE. Traders use them to hedge existing holdings or take a view on price movements with a smaller upfront margin, which also increases the risk of loss. Derivatives are available on indices (such as Nifty 50 and Sensex) and on individual stocks that meet SEBI's eligibility criteria.
Key Features of F&O Trading on Axis Direct
Leverage
Achieve more exposure to market opportunities with relatively less capital.
Flexibility
Looking to hedge your portfolio? Speculate? Derivatives are the answer.
Low cost
Benefit from zero demat charges and low costs of carrying positions forward.
How to Trade Derivatives?
A step-by-step guide to get started with derivatives
Step 1Open an account
- Step 2
Activate segment
- Step 3
Do your research
- Step 4
Start trading
- Step 5
Monitor & re-evaluate
Learn Derivatives
New to futures and options? Start with these short lessons from Axis Direct and build your basics before you place your first trade.
A Guide to Derivatives
A Derivative is a financial contract whose price is derived from the underlying asset. This chapter goes beyond just the definition and aims to give the reader a broader overview.
Who Trades Derivatives?
Derivatives are used by hedgers, arbitrageurs and speculators. In stock markets, they are used either to hedge cash portfolios or to bet on direction. Read the lesson to dive deep.
Introduction to Futures
A Futures contract is an exchanged-based agreement to buy or sell an asset at a fixed price on a future date. It helps traders hedge against price changes or speculate on market movements.
Understanding Options
right to buy or sell the underlying asset at a price fixed today on or before expiration. This chapter will take you through the most important concepts applicable to options.