Indian Capital Market Structure

A) Cash / Equity Market

• Rules and Regulation of Cash Market
• Advantages of Equity or Cash Market
• Intraday & Delivery & Swing Trading in Cash Market
• Cash Market Penalty & Auction
• What Is Arbitrage and its benefits

B) Option Market

Overview of Options

• Definition and Different Types of Option
• Rules and Regulation of Option Market
• American Option Vs European Option
• Call Option & Put Option
• Stock Option vs Index Option
• Option Buying vs option selling
• Option trading stock and index – Lot Sizes, expiry date and Contracts prices

C) Options Pricing and Valuation

• Understanding Moneyness of Option (ITM, ATM, OTM)
• Time value of Option
• Option Greeks – Delta, Gamma, Theta, Vega
• Intrinsic value calculation

D) Reading an Option Chain

• Structure of option chain
• Analysis of Open interest, PCR ratio, Volume
• Strike Price, Premium (LTP), Chng in OI
• Market Participants – FII, DII, HNI, retailler
• Identify Support and Resistance using option chain

E) Hedging

• What is hedging and its importance
• Payoff graph
• Capital requirement of hedging
• Benefits and Edge of Option hedging
• Advantage and limitation of option trading

F) Commodity Market

• Scope of Commodity Market
• Commodity Exchanges in India
• Rules and Regulation
• Commodity Trading – Lot size, expiry, tick size, contract, prices,
• Leverage and margin
• Option Trading in MCX
• Inventory of Commodity Market and Its effects
• Factors Impacting on Commodity
• Different Segments of Commodity

G) MCX (Multi Commodity Exchange)
National Commodity & Derivative Market (N.C.D E.X)

Currency Market

• Rules and Regulation of Currency Market
• Currency trading – Lot Sizes, expiry, tick size, contacts and prices
• External Factors Aspect in Currency Market
• Difference Between Currency and Forex

H) Derivative Market (FNO)

Future Market

• Role of Future Market and Future Trading
• Rules and Regulation of Future Market
• Index Future & Stock Future
• Future Trading in stock and index -Lot Sizes, Expiry date and Contracts prices
• Benefits of Future Market
• Margin and Leverage in Future Trading
• What Is BTST & STBT, & Their Importance
• Advantage & limitation of future trading
• Equity market vs Future market