NISM-Series-VIII: Equity Derivatives

What You Will Learn
Basics of forwards, futures, and options
Key difference between forwards, futures, and options
Option Greeks and implied volatility
Various options trading strategies
SEBI regulations and compliance
Accounting, settlement, disclosures, and taxation of derivatives
Investor rights and grievance redressal mechanism
Access to quizzes to ensure a thorough understanding
Your Course Overview
10 sections • 113 topics • 20 hrs 2 mins content
1. Basics of Derivatives
1 hr
Introduction
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Basics & history of derivatives
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Participants in the derivatives market
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Type of derivatives market
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Summary
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Quiz - 1
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2. Understanding Index
1 hr
Introduction to index
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Type of market indices - I
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Type of market indices - II
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Attributes of an index
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Index management
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Application of indices
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Quiz - 2
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3. Introduction to Forwards and Futures
4 hrs
Introduction
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Introduction to forwards
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Limitations of forwards
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Introduction to futures
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Contract specifications - I
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Contract specifications - II
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Contract specifications - III
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Contract specifications - IV
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Contract specifications - V
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Difference between futures and forwards
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Payoff Charts
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Cash and carry
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Convenience yield
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Expectancy model
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Uses of futures
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Uses of index futures
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Different types of hedging
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Arbitrage opportunity
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Quiz - 3
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4. Introduction to Options
2 hrs
Introduction
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Basics of options
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Payoff Charts
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Terminology - I
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Terminology - II
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Moneyness
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Intrinsic value and time value
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Opening, closing, and leverage
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Difference between futures and options
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Option Greeks - I
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Option Greeks - II
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Option pricing model
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Implied volatility
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Analysis of options - I
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Analysis of options - II
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Quiz - 4
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5. Option Trading Strategies
3 hrs
Introduction
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Use of futures for hedging
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Use of futures for trading
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Use of futures for arbitrage
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Strategies using options - Bull spread
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Strategies using options - Bear spread
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Horizontal and diagonal spread
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Strategies using options - Straddle
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Strategies using options - Strangle
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Strategies using options - Covered call
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Strategies using options - Collar
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Strategies using options - Butterfly
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Strategies using options - Protective put
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Arbitrage using put-call parity
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Delta hedging
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Interpreting open interest
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Quiz - 5
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6. Introduction to Trading Systems
52 mins
Introduction
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Time conditions and price conditions
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Trading workstation
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Selection criteria of stocks
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Adjustment for corporate actions
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Using newspaper to track F&O
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Quiz - 6
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7. Introduction to Clearing and Settlement System
1 hr
Introduction
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Clearing system
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Interoperability of clearing corporation
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Settlement mechanism - I
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Settlement mechanism - II
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Mark to market and span
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Margins
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Margins and position limits
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Position limits for MF and FII
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Penalties and investor protection fund
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Quiz - 7
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8. Legal and Regulatory Environment
53 mins
Introduction
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SEBI Securities Act and regulations in trading
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Regulations in clearing and settlements - I
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Regulations in clearing and settlements - II
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Trade Guarantee Fund (TGF)
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Eligibility criteria for members
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SOP for default by TM or CM
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Quiz - 8
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9. Accounting and Taxation
1 hr
Introduction
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Accounting for forward contracts
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Accounting of equity index and equity stock futures
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Accounting for the final settlement
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Accounting for equity index options
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Accounting for squaring off of option contracts
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Disclosure
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Taxation
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Quiz - 9.1
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Quiz - 9.2
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10. Sales Practices and Investor Protection Services
2 hrs
Introduction
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Sales practices and investor protection services
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Risk profiling of clients - I
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Risk profiling of clients - II
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Risk-based approach
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KYC - I
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KYC - II
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Anti-money laundering procedures
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Investor grievances
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Scores
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Investors dos and don'ts
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Quiz - 10
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About The Course
This course is structured to help you ace the NISM-VIII: Equity Derivatives exam by covering all essential topics. You'll gain a deep understanding of forwards, futures, options, option Greeks, implied volatility, and trading strategies like spreads, straddles, and strangles. Additionally, the course covers SEBI regulations, settlement processes, taxation, and investor protection. With quizzes and practical insights, you’ll build a solid foundation to confidently clear the exam.
In Lesson 1, Basics of Derivatives, you will understand the basics of the derivatives market.
In Lesson 2, Understanding Index, you will explore different types of market indices and learn about their key attributes.
In Lesson 3, Introduction to Forwards and Futures, you will learn about the fundamentals of forwards and futures, their differences, limitations, and contract specifications. You will learn about payoff charts, hedging strategies, arbitrage opportunities, and key concepts like cash and carry, convenience yield, and the expectancy model.
In Lesson 4, Introduction to Options, you will learn the fundamentals of options, including key terminologies, payoff charts, moneyness, and the difference between futures and options. You will also explore option Greeks, pricing models, implied volatility, and techniques for analyzing options.
In Lesson 5, Options Trading Strategies, you will learn how to use futures for hedging, trading, and arbitrage. You will also explore various options trading strategies along with concepts like delta hedging, put-call parity arbitrage, and interpreting open interest.
In Lesson 6, Introduction to Trading Systems, you will learn about time and price conditions and how to select stocks for trading. You will also understand corporate action adjustments and how to track F&O markets using newspapers.
In Lesson 7, Introduction to Clearing and Settlement System, you will learn about the clearing and settlement process, margin requirements, position limits, and investor protection measures in the derivatives market.
In Lesson 8, Legal and Regulatory Environment, you will learn about SEBI rules for trading and settlement, trade guarantee funds, and what happens if a trader defaults.
In Lesson 9, Accounting and Taxation, you will learn about the accounting and taxation of derivatives.
In Lesson 10, Sales Practices and Investor Protection Services, you will learn about investor protection, risk profiling, KYC norms, anti-money laundering procedures, and investor rights to ensure safe and compliant trading.
Course Highlights:
- Basics of forwards, futures, and options
- Key difference between forwards, futures, and options
- Option Greeks and implied volatility
- Various options trading strategies
- SEBI regulations and compliance
- Accounting, settlement, disclosures, and taxation of derivatives
- Investor rights and grievance redressal mechanism
- Access to quizzes to ensure a thorough understanding
Who is this course for:
- Aspiring traders looking to understand derivatives trading
- Students and beginners preparing for the NISM-VIII examination
- Finance students preparing for industry certifications
- Beginners who want to build a strong foundation in derivatives
Learn From - Ashish Godse

Ashish Godse
Ashish D. Godse is an MBA graduate and CFA Charterholder with 15+ years of experience in finance. He has over a decade of teaching experience, including 4 years as a finance professor at a premier B-school. Currently, he works as a Research Analyst for an American firm. With expertise in Financial Modeling, Valuation, Equity, Derivatives, and Corporate Finance, he simplifies complex financial concepts, making learning engaging and practical.Learners Also Bought
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