As the name suggests a derivative is a security which derives its value from the underlying asset. These underlying assets may include stocks, commodity, currencies and indeces. Primarily, derivatives are of two kinds viz, futures and options. Broadly speaking, futures of any underlying asset is the expected future value of the same. Options, on the other hand, give the buyer the right but not an obligation to enter into a contract on pre-specified terms. Options may be of two kinds, viz, CALL and PUT.
Call is an option (but not an obligation) to buy at a pre-determined rate while Put is an option to sell the underlying asset, again at a pre-determined rate.
Though derivative trading was introduced in Indian stock exchanges in 2000 but it is only of late that trading in derivatives is gaining momentum. To this end, it is our endeavour to provide you a complete trading platform supported by company specific research tools and technical analysis absolutely FREE of cost. Pertinent to mention that in this segment, LTC offers the best in the business trading opportunities to all its clients.