Use of futures for arbitrage

NISM-VIII: Equity Derivatives

Course content

Lesson 1: Basics of Derivatives

1. Introduction

3 mins

2. Basics & history of derivatives

16 mins

3. Participants in the derivatives market

18 mins

4. Type of derivatives market

11 mins

5. Summary

1 min

6. Quiz - 1

10 mins

Lesson 2: Understanding Index

1. Introduction to index

13 mins

2. Type of market indices - I

17 mins

3. Type of market indices - II

16 mins

4. Attributes of an index

18 mins

5. Index management

13 mins

6. Application of indices

8 mins

7. Quiz - 2

4 mins

Lesson 3: Introduction to Forwards and Futures

1. Introduction

1 min

2. Introduction to forwards

21 mins

3. Limitations of forwards

9 mins

4. Introduction to futures

12 mins

5. Contract specifications - I

14 mins

6. Contract specifications - II

13 mins

7. Contract specifications - III

19 mins

8. Contract specifications - IV

5 mins

9. Contract specifications - V

13 mins

10. Difference between futures and forwards

4 mins

11. Payoff Charts

13 mins

12. Cash and carry

29 mins

13. Convenience yield

8 mins

14. Expectancy model

14 mins

15. Uses of futures

19 mins

16. Uses of index futures

14 mins

17. Different types of hedging

15 mins

18. Arbitrage opportunity

10 mins

19. Quiz - 3

18 mins

Lesson 4: Introduction to Options

1. Introduction

13 mins

2. Basics of options

12 mins

3. Payoff Charts

15 mins

4. Terminology - I

10 mins

5. Terminology - II

14 mins

6. Moneyness

5 mins

7. Intrinsic value and time value

4 mins

8. Opening, closing, and leverage

11 mins

9. Difference between futures and options

4 mins

10. Option Greeks - I

13 mins

11. Option Greeks - II

6 mins

12. Option pricing model

5 mins

13. Implied volatility

9 mins

14. Analysis of options - I

16 mins

15. Analysis of options - II

6 mins

16. Quiz - 4

17 mins

Lesson 5: Option Trading Strategies

1. Introduction

1 min

2. Use of futures for hedging

13 mins

3. Use of futures for trading

10 mins

4. Use of futures for arbitrage

9 mins

5. Strategies using options - Bull spread

22 mins

6. Strategies using options - Bear spread

17 mins

7. Horizontal and diagonal spread

4 mins

8. Strategies using options - Straddle

17 mins

9. Strategies using options - Strangle

12 mins

10. Strategies using options - Covered call

12 mins

11. Strategies using options - Collar

9 mins

12. Strategies using options - Butterfly

9 mins

13. Strategies using options - Protective put

12 mins

14. Arbitrage using put-call parity

9 mins

15. Delta hedging

7 mins

16. Interpreting open interest

7 mins

17. Quiz - 5

12 mins

Lesson 6: Introduction to Trading Systems

1. Introduction

9 mins

2. Time conditions and price conditions

13 mins

3. Trading workstation

4 mins

4. Selection criteria of stocks

6 mins

5. Adjustment for corporate actions

8 mins

6. Using newspaper to track F&O

3 mins

7. Quiz - 6

6 mins

Lesson 7: Introduction to Clearing and Settlement System

1. Introduction

2 mins

2. Clearing system

10 mins

3. Interoperability of clearing corporation

6 mins

4. Settlement mechanism - I

15 mins

5. Settlement mechanism - II

15 mins

6. Mark to market and span

10 mins

7. Margins

11 mins

8. Margins and position limits

10 mins

9. Position limits for MF and FII

5 mins

10. Penalties and investor protection fund

15 mins

11. Quiz - 7

11 mins

Lesson 8: Legal and Regulatory Environment

1. Introduction

2 mins

2. SEBI Securities Act and regulations in trading

20 mins

3. Regulations in clearing and settlements - I

5 mins

4. Regulations in clearing and settlements - II

3 mins

5. Trade Guarantee Fund (TGF)

1 min

6. Eligibility criteria for members

2 mins

7. SOP for default by TM or CM

8 mins

8. Quiz - 8

8 mins

Lesson 9: Accounting and Taxation

1. Introduction

1 min

2. Accounting for forward contracts

5 mins

3. Accounting of equity index and equity stock futures

19 mins

4. Accounting for the final settlement

7 mins

5. Accounting for equity index options

15 mins

6. Accounting for squaring off of option contracts

7 mins

7. Disclosure

4 mins

8. Taxation

10 mins

9. Quiz - 9.1

4 mins

10. Quiz - 9.2

27 sec

Lesson 10: Sales Practices and Investor Protection Services

1. Introduction

1 min

2. Sales practices and investor protection services

26 mins

3. Risk profiling of clients - I

19 mins

4. Risk profiling of clients - II

14 mins

5. Risk-based approach

4 mins

6. KYC - I

6 mins

7. KYC - II

8 mins

8. Anti-money laundering procedures

4 mins

9. Investor grievances

16 mins

10. Scores

8 mins

11. Investors dos and don'ts

13 mins

12. Quiz - 10

10 mins