Futures
Options
Currencies
Commodities
- Leverage futures contracts to predict the direction of an underlying asset
- Place orders quickly without any adverse impact on the price
- Get the brokerage and margin benefits for trade benefits
- Manage foreign exchange risk and price risk for trade aggregates
- Margin calculator, brokerage calculator, and much more
SMC - Made easy to Trade easy
Trading just got faster
No more lags, place your trade swiftly with a swipe of your fingers from the Options Chain
Analyse your trades
Analyze your trades on charts with TradingView and Chart IQ to gauge the maximum possible profit, loss, breakeven points, and much more
Basket Orders
Place upto 10 different orders with basket orders, execute your strategies and get margin benefit by hedging your positions.
Know your opportunities
Know the most traded Options based on Open Interest and trading volume to explore long position or short position.
Market updates
Daily market updates, be it corporate actions, stock results, earnings, shareholding patterns to major announcements, track them all in one place.
Expert Research
Expert advisory on Derivative contracts for Intraday, short-term, and Baskets. and Expiry Day for knowledge-empowered decision-making.
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FreeAMC (for 1st Year)
FreeResearch advisory
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Freeresearch webinars
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Freededicated RM
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Frequently Asked Questions
A derivative is a financial contract whose value is based on the value of an underlying asset. The underlying asset can be a stock, bond, commodity, currency, or interest rate. Derivatives are used to hedge against risk, speculate on price movements, or to manage cash flow.
The participants in the derivatives market can be broadly categorized into four groups.
Hedgers -Hedgers are derivatives users who seek to reduce their risk exposure. Forexample, a farmer might use a futures contract to hedge against the risk of falling crop prices.
Speculators-Speculators are derivatives users who seek to profit from price movements. They take on increased risk in hopes of earning a higher return.
Arbitrageurs-Arbitrageurs are derivatives users who seek to profit from small price differences between different markets.
Market makers -Market makers are intermediaries who facilitate the trading of derivatives. They provide liquidity to the market by buying and selling derivatives contracts.
A futures contract is a standardized legal agreement to buy or sell something at a predetermined price for delivery at a specified time between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. Futures contracts are traded on exchanges and are subject to regulation and oversight. This makes them a more secure investment than over-the-counter (OTC) derivatives, which are not traded on an exchange. Futures contracts are used by various participants in the financial markets, including hedgers, speculators, and arbitrageurs.
An option is a financial contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The underlying asset can be a stock, bond, commodity, currency, or interest rate.
There are two types of options - Calls and Puts.
- Call options Give the buyer the right to buy the underlying asset at a specified price on or before a specified date.
- Put options Give the buyer the right to sell the underlying asset at a specified price on or before a specified date.
The expiration date in an option contract is the last day the option can be exercised. It is the date the option contract expires and is no longer valid. The expiration date is predetermined when the option contract is created and is usually the third Friday of the expiration month. The expiration date is also important for determining the price of an option. Options that expire sooner are typically more expensive than options that expire later. This is because options with a shorter time to expiration have less time for the underlying asset to move in the desired direction.
Options and futures are both derivatives, meaning their value is derived from the value of an underlying asset. However, there are some key differences between the two.
Obligation - With options, the buyer has the right, but not the obligation, to buy or sell the underlying asset at the specified price on or before the expiration date. With futures contracts, the buyer must buy, and the seller must sell the underlying asset at the specified price on or before the expiration date.
Trading - Options and futures are both traded on exchanges. However, options are typically traded in smaller quantities than futures contracts.
Price - The price of an option is called a premium. The price of a futures contract is called a margin. The premium is typically much lower than the margin.
Profit potential - The profit potential of an option is limited to the premium the buyer paid. The profit potential of a futures contract is unlimited.
Risk - The risk of an option is limited to the premium the buyer paid. The risk of a futures contract is unlimited.
You can buy/sell Options contracts through broking firms that are registered members of the BSE or NSE. SMC provides you with online platforms and/or mobile applications allowing you to trade in all derivatives contracts.
When looking at an Option, assess the underlying asset(s) and try to estimate the direction its price might take in the coming month.
You need to open a Demat and trading account for stock trading online. You can open a Demat and trading account with SMC by completing an application from the website. Further, required documents like an Aadhaar card, PAN, driving license, and passport-size photo must be provided for verification. After successful verification is done by SMC, a client id will be provided to start trading.