'Derivatives' is the emerging concept in the Indian capital market. Derivative refers to a It was introduced in NSE in the year 2000 and recently in BSE also. Today there are various types of derivatives like futures, options, forwards, swaps etc., Among them futures and options are significant in the Indian capital market. Today, nearly 80 percent of the transactions are only in derivative market. There are various strategies that these derivative traders follow. For the convenience of the study, the author has analyzed only options strategies used by the options traders. Keywords: Derivative, Option, NSE, BSE, Exchange Traded Fund Introduction security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the prices of the underlying assets. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage. It was introduced in NSE in the year 2000 and recently in BSE also. Today there are various types of derivatives like futures, options, forwards, swaps etc., Among them futures and options are significant in the Indian capital market. Today, nearly 80 percent of the transactions are only in derivative market. There are various strategies that these derivative traders follow. For the convenience of the study, the author has analyzed only options strategies used by the options traders.
Keywords
Derivative, Option, NSE, BSE, Exchange Traded Fund.
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