Overview of Derivatives

• • Definition and types of derivatives
  • Importance and functions of the derivatives market

Understanding Futures and Options

1. • Key differences between futures and options
   • Basic terminology: Contracts, expiration, strike price, etc.

Basics of Futures Trading

• • What is a futures contract?
  • Mechanics of futures trading
  • Margin requirements and leverage

Types of Futures Contracts

1. • Equity futures
   • Commodity futures
   • Currency futures
   • Interest rate futures

Pricing and Valuation

1. • Cost of carry model
   • Futures pricing formula
   • Arbitrage opportunities

Basics of Options Trading

• • What is an options contract?
  • Call options vs. put options
  • Intrinsic value and time value

Options Pricing and Greeks

1. • Factors affecting options pricing
   • Black-Scholes model
   • Understanding the Greeks: Delta, Gamma, Theta, Vega, Rho

Types of Options

1. • American vs. European options
   • In-the-money, at-the-money, out-of-the-money options

Basic Strategies

• • Long call and long put
  • Covered call and protective put

Intermediate Strategies

1. • Straddles and strangles
   • Spreads: Vertical, horizontal, and diagonal

Advanced Strategies

1. • Iron condor
   • Butterfly spread
   • Calendar spread

Understanding Risk in Derivatives Trading

• • Types of risks: Market risk, credit risk, liquidity risk
  • Measuring and managing risk

Hedging Techniques

1. • Using futures for hedging
   • Using options for hedging
   • Delta hedging and portfolio insurance

Trading Platforms and Tools

• • Introduction to trading platforms
  • Using technical analysis tools in FnO trading
  • Options analytics software

Case Studies and Real-World Examples

1. • Analyzing historical trades
   • Lessons learned from real-life scenarios

Developing a Trading Plan

1. • Setting trading objectives
   • Risk management and position sizing
   • Record keeping and performance analysis

Regulations and Compliance

• • Overview of regulatory bodies (SEBI, CFTC, etc.)
  • Key regulations affecting FnO trading
  • Understanding contract specifications and market rules

Taxation and Reporting

1. • Tax implications of FnO trading
   • Reporting requirements and best practices

Understanding Trader Psychology

• • Common psychological pitfalls
  • Techniques to manage emotions in trading

Building Discipline and Patience

1. • Importance of a disciplined approach
   • Strategies to improve trading discipline

Summary of Key Concepts

• • Recap of major topics covered
  • Key takeaways

Further Reading and Resources

1. • Recommended books and articles
   • Online resources and tools

Q&A and Final Assessment

1. • Addressing common questions
   • Final course assessment or quiz