The derivative segment is a leveraged market that allows investors an opportunity
to earn higher profits (or losses) by paying a base minimum amount of margin. Since
its launch, Future & Options segment has cornered major share in trading in financial
markets. Future contracts are available on Equities, Indices, Currency and Commodities.
Arcadia has membership as Trading Member of NSE F&O Segment to enable you to participate
in the roller-coaster which is the derivatives segment.
A futures contract is an agreement between two parties in which the buyer agrees
to buy an underlying asset from the seller, at a future date at a price that is
agreed upon today. A futures contract is standardized by the exchange. All the terms,
other than the price, are set by the stock exchange
Options contracts are instruments that give the holder of the instrument the right
but not the obligation to buy or sell the underlying asset at a predetermined price.
An option can be a 'call' option or a 'put' option. A call option gives the buyer,
the right but not obligation to buy the asset at a given price. This is called 'strike
price'. The seller of the option has only the obligation and not the right. Similarly
a 'put' option gives the buyer a right but not obligation to sell the asset at the
'strike price' to the buyer. Here the buyer has the right to sell and the seller
has the obligation to buy. In return for writing the option, the seller collects
a “premium” or price of the option from the other party.
Options Trading Strategies
Options are traded in the market using a wide range of Options Strategies. Options
strategies generally involve the simultaneous purchase and/or sale of different