Futures and options are both derivatives, but they behave very differently. A futures contract is an obligation to settle a price difference at expiry, with daily mark-to-market and margins that can be called at short notice. An option is a right, bought for a premium. Confusing the two is an expensive way to learn the difference.
This course covers futures properly first: contract specification, lot size, margin, mark-to-market, basis, roll-over and hedging. Options are then introduced in enough depth to compare them with futures on obligation, cost and risk. The dedicated options course goes further into Greeks and structures; this one focuses on the derivatives segment as a whole.
- Level: Intermediate to Advanced
- Format: Live online, with recordings for revision
- Best for: Learners who want to understand derivatives beyond a single strategy, including hedging and the mechanics of margin.
Who this course is for
It suits equity traders moving into derivatives, investors with a portfolio who want to understand index hedges, and anyone who has been surprised by a margin call or a mark-to-market debit.
It is probably not the right fit if you have no experience with equity trading or cannot explain what a stop loss is. Derivatives add leverage to whatever you already do, including mistakes.
What you will be able to do afterwards
The syllabus is written as capabilities rather than topics. By the end of the programme, a learner who has done the work should be able to:
- Explain a futures contract’s obligations, lot size, margin and expiry
- Follow a mark-to-market cycle and anticipate a margin call
- Compare a futures position with an equivalent options position on risk and cost
- Construct a simple hedge for an existing equity holding and state what it does and does not protect
Course syllabus
The syllabus covers what derivatives are and why they exist, futures specifications, margins and mark-to-market, cost of carry and basis, futures versus options, hedging with index futures, leverage arithmetic and derivatives-specific risk controls.
- Derivatives: what they are and why they exist
- Futures contracts: specification, lot size, tick size and expiry
- Initial margin, exposure margin, span and mark-to-market
- Cost of carry, basis and roll-over
- Futures versus options: obligation, payoff and margin
- Hedging an equity portfolio with index futures
- Leverage: the arithmetic of a 10 per cent adverse move
- Risk controls specific to the derivatives segment
Mark-to-market is a daily reality
Futures profits and losses are settled daily, not only at expiry. If the position moves against you, the loss is debited from your account and the margin balance falls. If it falls below the maintenance requirement, the broker asks for more money or squares off the position. This can happen while your longer-term view is still intact.
We walk through a mark-to-market cycle with actual contract values and show how a modest adverse move translates into a margin call. The lesson is not that futures are unusable; it is that the position size must be set with the daily settlement in mind, not just the eventual target.
What a hedge does and does not do
An index futures short can reduce the market exposure of an equity portfolio, but it does not remove stock-specific risk, and it introduces basis risk between the portfolio and the index. It also requires margin and active management. A hedge is a tool with a cost, not a free insurance policy.
You will construct a simple hedge for a hypothetical portfolio, calculate the number of contracts needed, and state what the hedge protects against and what it leaves exposed. That exercise is more useful than memorising a list of derivative strategies.
How the course is taught
Live sessions use current contract specifications and margin figures from Indian exchanges, with worked examples on index futures. You will calculate margin, mark-to-market and hedge ratios yourself.
The course is educational. It does not recommend a futures or options position, and it does not promise that a hedge will improve returns.
- Live sessions on a shared screen, using current NSE and BSE charts rather than static screenshots.
- Time for questions in every session, with doubts answered in plain language.
- Session recordings and revision notes, so a missed evening does not break the sequence.
- Exercises that ask you to mark a chart, size a position or explain a decision before you risk money on it.
Duration, fees and batch timings
We do not publish a fixed fee or a fixed calendar because both depend on the course and the batch you join. Contact us on WhatsApp for the latest course fees, available batches and complete course details.
When you enquire, ask for the session length, the number of sessions, the batch days and what happens if you miss a class. A provider should be able to answer all four before you pay.
Course completion and certificate
Learners who complete the programme receive a course completion record from Share Market Training. It confirms the training you attended and the topics covered. It is not a SEBI registration, a licence to advise others, or a guarantee of trading results, and it should never be presented as any of those things.
Completion means you attended the sessions and did the exercises. It does not mean you have passed a test of profitability, because no course can certify that.
What this course does not do
It does not give stock tips, model portfolios, buy or sell recommendations, or a signal service. It does not promise a return, a monthly income or a fixed number of profitable trades. It does not replace your own judgement or remove market risk.
Derivatives are leveraged instruments. A small adverse move in the underlying can produce a loss far larger than the margin deposited, and positions may be squared off by the broker. Learn the mechanics thoroughly before committing capital.
A sensible next step
If your interest is mainly options, the options trading course goes deeper into pricing and the Greeks. If you want the full derivatives picture first, start here and then specialise.