ISM Institute of Stock Market Delhi

Derivative Analysis Course

About Certified Derivatives Course

With the fast-growing financial category, One should also extend their knowledge of derivative products. Gain in-depth knowledge of various unlying financial market instruments.

Learn the skills to unriddle the technical intricacy of derivatives. It is easy to learn and totally functional.


Overview of a Derivative Analysis Course

Our derivative analysis course in Delhi holds significant importance for investors and traders who are looking to gain a deep understanding of derivative instruments and their role in financial markets. Derivatives, such as options, futures, and swaps, are complex financial instruments that allow investors to hedge risks, speculate on price movements, and enhance their portfolio returns.

Understanding the intricacies of derivatives and their applications is crucial for investors and traders looking to effectively manage risk and maximize returns in their investment strategies. The derivative analyst course in Delhi provides in-depth knowledge of various derivative instruments, their characteristics, pricing models, trading strategies, and risk management techniques. It helps investors and traders gain insights into the complexities of derivatives, including factors that affect their pricing, potential risks, and strategies for mitigating those risks.

Importance of Our Derivative Analyst Course

  • Derivatives are complex financial instruments that can expose investors and traders to various risks. Derivative analysis course provides a deep understanding of different types of derivatives, their characteristics, pricing models, and risk management techniques.
  • Course helps investors and traders learn how to effectively manage risks associated with derivatives, such as market risk, credit risk, and counterparty risk, thereby minimizing potential losses and protecting their investments.

  • It equips participants with the knowledge and skills to analyze market trends, identify profitable trading opportunities, and implement effective derivative strategies to optimize their investment performance. This can lead to improved returns and more diversified investment portfolios.

  • The course provides the necessary knowledge and skills to make informed decisions when it comes to investing or trading derivatives. It helps participants develop a critical mindset, analytical skills, and the ability to evaluate potential risks and rewards associated with derivatives, enabling them to make informed decisions based on sound analysis and judgment.

Topics which will be covered

Basics of Derivatives Analysis

Basics of Derivatives Analysis
1.1 What are Derivatives?
1.2 Products of Derivative Market
     1.2.1. Futures (Stocks, Commodities, Currency)
     1.2.2. Forwards (Currency & Commodities)
     1.2.3. SWAPS (Currency & Interest Rates)
1.3 Forward contracts
1.4 Futures contracts
1.5 Difference between Forwards & Futures
1.6 Key Terminologies in Future Market
     1.6.1. Spot Price
     1.6.2. Future Price
     1.6.3. Expiry Cycle
     1.6.4. Contract Value
     1.6.5. Basis Point
     1.6.6 Cost of carrying
1.7 Participants in Derivative Market
     1.7.1. Hedgers
     1.7.2. Arbitragers
     1.7.3. Speculators & Margin Traders

Introduction to forwards and futures

2.1 Major Limitations of Forwards
2.2 Future Contract and its Features
2.3 Pay-off Future Contract
     2.3.1. Understanding Margins
     2.3.2. Brokerage calculation in futures & options
     2.3.3. Understanding MTM (Mark to Market)
2.4 Index Calculation
     2.4.1. Market Capitalization weighted index method
     2.4.2. Free Float Market Capitalization Weighted Index Method
     2.4.3. Price Weighted Index Method
     2.4.5. Equal Weighted Index Method
2.5 Price Risk in Index Futures
2.6 Pricing of Future Contract
     2.6.1. Concept of Compounding
     2.6.2. Types of Compounding: Discrete & Continuous
     2.6.3. Basics of Time Value of Money
     2.6.4. Calculation of Future Price Using Cost Of Carry Model
     2.6.5. Area of Convergence
2.7 Hedging
     2.7.1. Types of Hedging: Stock with future, portfolio hedging using a beta, option hedging
     2.7.2. Need of Hedging
     2.7.3. How to hedge stock with its Future?
2.8 Understanding Beta
     2.8.1. What Is Beta?
     2.8.2. How to find Beta?
2.8 Hedging Stock using beta
2.9 Portfolio construction and its hedging using beta
2.10 Systematic and Unsystematic Risk

Introductions to Options

3.1 What are Options?
3.2 Call Option- Buy & Sell
3.3Put Option- Buy & Sell
3.4 Important Terminologies
3.5 Intrinsic Value and Time Value
3.6 Strategies for Trading Options
     3.6.1 Long Straddle & Short Straddle
     3.6.2 Long Strangle & Short Strangle
     3.6.3. Iron Condors
     3.6.4. Butterfly
     3.6.5. Covered Call & Synthetic Call
     3.6.6. Protective Put & Synthetic Put
     3.6.7. Collar & Box Strategies
3.7. Option Spreads
     3.7.1. Bull Call Spread
     3.7.2. Bear Put Spread
     3.7.3. Bull Put Spread
     3.7.4. Bear Call Spread
     3.7.5. Ratio Spreads
     3.8. Use of Strategies on Sensibull

All About Open Interest & Option Greeks

4.1 What Is Open Interest
     4.1.1. How Open Interest works?
     4.1.2. Difference Between OI & Volume.
     4.1.3. Understanding OI with example
     4.1.4. Option Chain Analysis
4.2 Practical Use of OI in Option Trading
     4.2.1. Finding Range of Market Using OI data from Option Chain
     4.2.2. Making Iron Condors using OI data
     4.2.3. Two leg and then conversion to four leg option strategies
4.3 Open Interest Analysis: Trend of market
     4.3.1. Analysing Change in OI with Price & Volume
     4.3.2. OI Data Interpretation from Moneycontrol and NSE website.
4.4 Max Pain Theory: Calculation & Use
4.5 Put Call Ratio: Calculation & Use
4.6 Put Call Parity
4.7. Option Greeks
     4.7.1. Delta
     4.7.2. Gamma 
     4.7.3. Theta
     4.7.4. Vega: IV (Implied Volatility & INDIA VIX)
     4.7.5. Rho
     4.7.6. Use of Greeks in practical option trading
     4.7.7. Option Calculator


Sachin Birla, Anup Kumar, Satyarth Grover & Ayushi Verma

Course Fee & Duration

Duration of the Course: 16 Hours + Live Trading ( Excluding Doubt classes)

Why not try before you buy?

Fee: ₹23,600

Is it for me?

It is designed to help Students, Chartered accountants, Entrepreneurs,  Day traders, Investors, Stock Brokers, Relationship Managers, Consultants, etc

Is there an exam?

Towards the end of the training, There is an optional NISM Series VIII Exam which will seek to create a knowledge benchmark in case you want to be associated with any Bank, Corporate Firm or broker.