Learning Derivatives through live trading simulations

Excel based live advanced derivative problem sets for learning and certifications

Derivatives is a dynamic stream of finance and have been evolving rapidly in the past decades. These instruments were ushered in mainly for risk mitigation purpose but now have widened use as a source of alpha. In India Derivative volumes are more than 15 times the cash trade market. The beauty of this market is the inherent leverage available to investors which magnifies returns as also potentially the losses. That is not true in the case of cash segment, where you have to pay the entire amount and not only margin.

It is increasingly important for investors and finance professionals like MBA, CA, CFAs to acquire a deeper understanding of how to profit from this large market segment. In line with the importance of the market, most finance courses now offer derivatives as a core or elective subject. However live derivative problems for advanced derivative techniques are only available in high end financial terminals. We have created an innovative and affordable system that simulates live derivative trading together with study material and video solutions to the problem sets.

What is covered

We cover in 3 modules basic, advanced and risk management live problems in derivatives.

Primer in Derivatives

This is is suitable for those who have studied the basic concepts of derivatives and want to know how they work in real world. We use real time F&O bhavcopy (price data) for Nifty and stocks. Start with the basic concepts related to options and futures and go on to understand trading in options and futures. Then proceed to more advanced topics, such as option chain and computation of implied volatility & stress loss. A total of 6 simulations are available as part of this package. This modules can be completed within 8-10 hours.

Example 1 - Futures Trading

Understand basic terms related to futures such as contract value, lot size, SPAN & Exposure margin and margin call. Understand how futures can be used as a hedging tool by portfolio managers and calculate the payoff of a long and short futures position in the Nifty 50 Index.

Example 2 - Understanding Option Chain

Obtain understanding of various concepts relating to option chain such as resistance & support level, open interest, short covering, long unwinding, put call ratio (PCR) and interpret NIFTY Option chain to understand the market sentiment.

Advanced Futures and Options

This is suitable for gaining mastery of the advanced concepts of futures and options with simulations built using actual data of past week for number of NSE traded stocks. Develop practical understanding of buying/selling call and put options, futures, option greeks and applications of derivatives including managing risk and trading . In this course, you will master how to use over 10+ basic and advanced options trading strategies. Learn when to choose which strategy based on the market conditions. A total of 8 simulations are available as part of this package. This modules can be completed within 12-15 hours.

Risk management

This certification is for portfolio risk managers with a primary focus on managing losses due to fluctuations in stock prices. You will learn how tools such as value at Risk and stress testing are used to proactively assess risk, and derivative instruments such as futures and options are used either to hedge against or to speculate and profit from those risks. You will also learn how to calculate exposure of a portfolio consisting of equity, futures and options and understand the process of monitoring portfolio exposure to ensure that it is within the set risk limits. A total of 9 simulations are available as part of this package. This modules can be completed within 15-20 hours.

What we provide

We provide in-depth study material on each simulation and also a video recording of how each problem set is solved.

• As a training module, 3 attempts are available at each simulation to ensure easy comprehension. Each user input is evaluated and scored by our system and based on these scores, the user receives an auto generated certification and web link.

• Instructors will be able assign these simulations sets as tests - only 1 attempt is provided, and study material and videos are hidden. Only scores are available to Instructors and no certificate is available when our product is used as tests.

Subscription offer to Institutions

Some of our products are Accredited under the NEAT program of Ministry of Education and are available to Academic Institutions at approved subscription rates. The above derivative simulation sets are included in the Institutional offer for full annual access as part of the subscription.

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