Derivatives Bramaresh

8/8/2019 Derivatives Bramaresh

http://slidepdf.com/reader/full/derivatives-bramaresh 1/7

A world of intelligent investing

A world of intelligent investing

Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide

premium

financial services and information, so that the power of investment is vested with the client. We

equip those who

invest with us to make intelligent investment decisions, providing them with the flexibility to

either tap into our

extensive knowledge and expertise, or make their own decisions. NSBL made its debut into the

financial world

by servicing Institutional clients, and proved its high scalability of operations by growing

exponentially over a

short period of time. Now, powered by a top-notch research team and a network of experts, we

provide an array

of retail broking services across the globe - spanning India, Middle East, Europe and America.

Currently, we are

a Depository participant at Central Depository Services India (CDSL) and aim to become one at

National

Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven

operations and

business units of research, distribution and advisory coalesce to provide you with a one-stop

solution to cater to

all your broking and investment needs. Our customers have been participating in the booming

commodities

markets with our membership at the Multi Commodity Exchange of India (MCX) and National

Commodity &



Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd.

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock

Exchange Ltd

(BSE) on the Capital Market and Derivatives (Futures & Options) segment. It is also a listed

company at

the BSE.

Corporate overview:

Networth has been successfully providing premium financial services and information for more

than a decade. Our aim has consistently been to empower investors to take charge of their

financial future & help them grow their Networth.

Networth has always endeavored to make a difference in the financial services space. It

constantly focuses on scaling and upgrading the technology infrastructure so as to provide the best services to the investors. We have a presence of over 300 centres across India.

We are..

y Managed by a talented team of around 1000+ professionals.y Serving nearly 100,000 clients across the country.

y ISO 9001:2000 Certified Software Division.y

Winner of CNBC-TV18¶s Financial Advisor Awards 2008 for Best Regional LevelFinancial Advisor.y Proclaimed amongst the most read research analyst (Team Networth) by Thomson

Reuters consistently over a period of time.y A Charter member of Financial Planning Standards Board of India [FPSB].

y Alliance partners with P NB for online trading.y Corporate Agents for MetLife India Insurance Co. Ltd.

Products and services portfolio:

Retail and institutional broking

Research for institutional and retail clients

Distribution of financial products



Corporate finance

Net trading

Depository services

Commodities Broking

Infrastructure

A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing

room, research wing & management and back offices.

All of 300 branches and franchisees are fully wired and connected to hub at Corporate

office at Mumbai.

Add on branches also will be wired and connected to central hub

Web enabled connectivity and software in place for net trading.

60 operative ID¶s for dealing room

State of the Art accounting and billing system, on line risk management system in placewith 100%

redundancy back up.

In house technology back up team to ensure un-interrupted connectivity.



R e s e a

r c h

R e p o

r t s o

n Comp a n y , S e c t o r , E

c o

n o m y

D e p o s

i t or y asv al u e c h a i n

Services

O n

l

i

n e

&

O f f l i n

e b r o

k ing i n E q u i t y &

D e r

i

v a t i e s

O n l i n

e & o f f l in ebroking i n c o m m o d i t i e s

N e t t r a d

i n g a s value chai n - i n o f f i n g

P o r t f o

l i o Manageme nt S c h e m

e

C o r porateF i na n c e

I n v e

s t o rAd visor y S e r v i c e s



OUR GROUP COMPANIES

Networth Stock Broking Ltd. [NSBL] NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock

Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. NSBL

has also acquired membership of the currency derivatives segment with NSE, BSE & MCX-SX. It is Depository participants with Central Depository Services India (CDSL) and NationalSecurities Depository (India) Limited (NSDL). With a client base of over 1L loyal customers,

NSBL is spread across the country though its over 300 branches. NSBL is listed on the BSEsince 1994.

Networth Wealth Solutions Ltd. [NWSL]

NWSL is into the business of delivery of Financial Planning & Advice. It¶s vision is to µAdvice& Execute money related solutions to/for our customers in the most Convenient & Consolidated

manner, while making sure that their experience with us is always pleasant & memorableresulting in positive advocacy¶. The product & Services include Financial Planning, Life

Insurance, On-line Trading Account, Mutual Funds, Debentures/Bonds, General Insurance,Loans and Depository Services.

Networth Commodities & Investments Limited [NCIL] NCIL is the commodities arm of NSBL. It is a member at the Multi Commodity Exchange of India (MCX), National Commodity & Derivatives Exchange (NCDEX) and ICEX & is backed

by solid research & analytics in Commodities.

Networth Soft Tech Ltd. [NSL] NSL is an ISO 9001:2000 Certified Company. It is into Application Development &

maintenance. Building & Implementation of packaged software across various functions withinthe Financial Services Industry is at its core. It also provides data center services which include

hosting of websites, applications & related services. It combines a unique delivery model infused by a distinct culture of customer satisfaction.

R avisha Financial Services Pvt. Ltd. [R FSL] RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan againstsecurities.

OBJECTIVES OF STUDY

1. To study various trends in derivative market.

2. Comparison of the profits/losses in cash market and derivative market.

3. To find out profit/losses position of the option writer and option holder.

4. To study in detail the role of the derivatives in Indian financial market.

5. To find out the how to minimize or hedge the risk by using strategies.



SCOPE OF THE STUDY

The study is limited to ³Derivatives with special references to futures and options in the

Indian context & the NIFTY ¶50 has been taken as a representative sample for the study. Thestudy can¶t be said as totally perfect. Any alteration may occur. The study has only made humble

attempt at evaluating derivatives only in India markets. The study is not based on the

international perspective of derivatives which exists in DOW JONES and NASDAQ.

R ESEAR CH METHODOLOGY

The following steps are involved in the study

Selection of scrip: Selection of scrip is done on a random basis and the scrip selected is NIFTY

¶50. The lot is of 50 size, profitability position of futures, buyers and sellers & also the option

holders and option writers is studied.

Data Collection: The data of the NIFTY ¶50 has been collected from the news paper & internet.

The data consist of six months contract & period of data collection is from MAY 2010 TO

OCTOBER 2010. Contracts. Sources of data www.nseindia.com

Analysis:

MARGINAL OF SAFETY HAS TO BE FINDING TO CALCULATE MINIMUM AND MAXIMUM

RISK ON EACH CONTRACT. And applying couple of strategies how to reduce risk. Here I m not

giving priority to technical analysis, because my study explains real time examples.

The analysis consist of the tabulation of the data assessing the profitability position of the fure

buyers & sellers and also the option holder & the option writer representing the data with graphs

and making interpretation using data. And apply some strategies how to minimize the risk with

live examples.

Derivatives Bramaresh

Documents

Transcript of Derivatives Bramaresh