Derivative Trading – Shreni shares

Derivatives Trading

Leverage more from your Investments by Trading in Futures & Options in the Derivatives Market. Under our Derivatives Market, we allow our clients to perform Futures Trading as well as Options Trading for higher growth rates.

Benefits of Derivatives

Hedging

It helps to safeguard against future price uncertainties

Leverage

As margins required are comparatively low, it allows higher trading exposure

Market Efficiency

It is considered that derivatives increase the efficiency of financial markets. By using derivative contracts, one can replicate the payoff of the assets.

Longer Position Taking

Longer position taking: It gives a time leverage of up to 3 months as against 1-3 days offered in other margin products

Why Derivatives

Earn Money without Physical Settlement

Derivatives market allows you to conduct transactions without
actually selling your shares

Arbitrage Trading

When you buy low in one market
and sell high in the other market,
Get advantage of differences in
prices in the two markets

Protect Securities

The derivative market offers
products that allow you to hedge
yourself against a fall in the
price of shares that you possess

Transfer of Risk

The transfer of market risk from
risk-averse investors to those
with an appetite for risk

Types of Derivatives

		Forwards and Futures finances that obligate the buyers to purchase an asset at a pre-agreed price on a specified future date

Options Options provide the buyer of the contracts the right, but not the obligation, to purchase or sell the underlying asset at a predetermined price

		Swap Swaps are derivative contracts that allow the exchange of cash flows between two parties. The most popular types of swaps are interest rate swaps, commodity swaps, and currency swaps.

Warrants A warrant is a derivative instrument which gives the warrant-holder a right to buy the underlying stock at a pre-determined strike price.