Introduction to Equity Derivatives

Course Objectives

This course is designed to provide participants with a foundational understanding of equity derivatives and their role in the financial markets. It aims to equip learners with knowledge of key derivative instruments such as futures and options, and explain their structure, pricing, and practical use cases. Through this course, participants will grasp essential concepts including strike price, premium, margin, and expiry. The course also explores real-world applications of derivatives for hedging, speculation, and arbitrage strategies, while emphasizing the associated risks and regulatory landscape. Furthermore, learners will gain insight into emerging trends such as algorithmic trading, and how equity derivatives are increasingly used in advanced portfolio management practices across global markets.

Pedagogy:

1. Interactive Lectures to explain concepts with real-market examples
2. Case Studies demonstrating hedging, speculation, and arbitrage in action
3. Visual Aids and Simulations to understand contract specifications and price behavior
4. Hands-on Exercises on interpreting futures and options data
5. Discussions and Q&A Sessions for clarification and real-world insights
6. Short Quizzes at the end of each module to reinforce learning

Programme Highlights:

• Learn the fundamentals of equity derivatives, including their types and role in markets
• Understand key terminology and contract structures such as strike price, margin, and lot size
• Distinguish between cash and derivative markets through comparative analysis
• Explore the strategic uses of derivatives in hedging, speculation, and arbitrage
• Assess the risks involved in derivatives trading, including leverage and liquidity concerns
• Get introduced to emerging tools and global trends, including algorithmic trading and portfolio applications
• Practical, real-time orientation with market examples and trading scenarios