Equity derivatives are instruments whose values are partly derived from one or more underlying equity asset classes. Future & Options are the most commodities traded equity derivatives products. Equity derivatives are used to hedge the risk associated with a long or short position, or to speculate on the price movement of stock or indices.
Equity future is a financial contract in which the parties are obligated to buy or sell the underlying securities or contract at a predetermined price at the future date. Equity future comes in with a maximum three-month expiry period with the last Thursday of that particular month being the settlement day. The biggest advantage of equity future trading is that it gives you an option to buy as well as short sell.
There are two types of equity options- Call or Put, a call option contract gives holder the right, but not the obligation to purchase share of a particular underlying stock at the pre-specified strike price on or before the expiration date. On the other hand, a put option contact gives the holder the right, but not the obligation to sell share. There are various offering like stock options, index option for investors to trade & benefit from them.
Derivatives are financial securities whose value or price is derived from an underlying asset or a group of assets, such as stocks, bonds, commodities and currencies. Whether you are long term investor or a short term speculator; they can be used to hedge portfolio in stocks, or to benefit from sharp movements in their prices.
We at HENSEX offer 2 different products. Trader need to use one of
MIS product code is used for trading
NRML product code is used for overnight trading of future and options.