Derivatives are among the most preferred investment products in the Stock Market, and yet many fail to recognize them correctly. Many are still as confused about them as ever. This course on “Introduction To Derivatives” is going to help you out here.
Hearing the mention of Derivatives, the mind almost like a reflex brings up Futures and Options. The popularity of these two has totally overshadowed other types of derivatives. The lack of knowledge of derivatives trading can only impact your take profits when you enter into this form of trading.
Stock Pathshala, the stock market e-learning platform offers many derivative courses. This course – Introduction To Derivatives is a free textual course accessible to all the users of the platform.
Also Read: Learn Derivatives
Contents of the Course – Introduction To Derivatives
This stock market course, ‘Derivatives’ provides learner insights about one of the most lucrative financial instruments – Derivatives. The chapter-wise segregation of the course matter further simplifies the learning path.
Chapter 1 – What are Derivatives?
We solve the above query here. We learn the definition, the various categories of derivatives all with ample use of examples to make it as discernible for a learner.
Further, we count some of the advantages of trading in this financial instrument. Likewise, we have a look at the other side of things as well. We run through the disadvantages of derivatives.
Chapter 2 – Types Of Derivatives
This chapter serves the purpose of enlightening the learner about the various types of derivatives. Some of the most common derivatives including options, forwards and futures, swaps.
We discuss the mechanism of these derivatives and learn through the means of examples about how investors employ derivatives into their investment plans. The risks and return potential vary among the types of derivatives.
Chapter 3 – Forward Contracts
The next topic at hand in our derivatives course is Forward Contracts. We learn about all the parties involved in the trade, and the procedure of carrying out trade.
All along while taking up several of the queries popping in the minds of learners and solving them through examples. Among the questions we take up in this course is – what’s the process to value the Forwards contracts
Later in the chapter, we learn about the risks involved in forwarding contracts trading.
Chapter 4 – Futures Contracts
Here in this chapter, the learner will get to learn about the most mainstream of all the derivatives – Futures. We talk about the most widely recognized markets for futures trading and the symbols employed by them.
We talk about the different types of futures contracts and most importantly the importance of futures.
At the back end of the chapter, the learner will recognize the risks involved in the futures derivatives.
Chapter 5 – Payoffs and Margins
We learn about the terms Payoffs and Margins in this chapter. Then, we move on to cover the advantages of opting for a margin loan, for they are quite a number.
Similarly, we take a look at the disadvantages and risks of Payoffs and Margins. We provide tips that will help a trader or investor in abating the dangers involved and how to effectively handle Payoffs and Margins.
Chapter 6 – Financial Leverage
In this chapter, we discuss the term, Financial Leverage. We answer questions regarding how financial leverage works and how does an increase in the value of land impacts financial leverage.
That calls for looking at the other side of things as well, that is what happens if the value of the land decreases.
Later in the chapter, we learn just how exactly we measure financial leverage.
Chapter 7 – Physical And Cash Settlement
A learner will get acquainted with the terms Physical and Cash settlement in this chapter. We discuss these terms, their mechanism, and all the parties involved in these transactions.
Both kinds of settlements have their own perks and advantages to offer. Likewise, they carry their own dangers as well.
Chapter 8 – What are Options?
We seek to solve the following queries through this chapter – What are Options? What are the different types of Options contracts?
The learner will get to learn about Call Option, Put Option.
So, in case you are looking to get your feet immersed in derivatives trading and make some good profits out of it, then why wait?
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