Complete Understanding of Stock Futures: Derivatives Part 1
What you'll learn
- Complete understanding of Futures as a stock derivatives
- The meaning and types of stock derivatives
- An understanding of a Forward contract
- The concept of trading Stock Futures
- Difference between Forwards and Futures
- Investing in Shares vis a vis Trading in Derivatives
- Live trades of a Futures contract
- The significance of margin money
- The terminologies of Futures
- Spot price, Future Price and Lot size
- LTP contract value and types of margins
- Going long, Going short and Squaring off
- Short covering, Short squeeze, Long unwinding and Long unwinding pressure
- Contango and Backwardation
- Breakout, False breakout and Whipsaw
- Difference between Spot and Derivative market
- Placing a Buy or Sell order
- Placing Market and Limit orders with stop loss and trigger price
- Understanding Stop loss and Trigger price
- Practical application of concepts
- Minimizing losses through stop loss in bullish trade
- Protecting profits through stop loss in bullish trade
- Minimizing losses and protecting profits in bearish trade
- A complete understanding of Hedging with Futures
- The course has been progressively build right from the very basics. Any person with an interest in stock market can understand. However, some basic knowledge of stock market will certainly be helpful.
In this course hosted by PRUDENCE Engineering and Financial Consultants, Col (Dr) Shabbar Shahid, an Army Veteran and a post graduate in Engineering and Finance with a Doctorate in management explains Stock Futures in a very simple manner with live examples.
You will learn things like The conceptual differences between investing in shares and trading in derivatives, Spot market and derivative market, Going long and Going short, Market and Limit orders, Breakout-False breakout and Whipsaw, Contango and Backwardation and various concepts like Minimizing losses and protecting profit through application of stop loss and triggers in bullish and bearish trades, Arbitration and protection of Portfolio through Hedging have been explained in a very simple manner right from the basics. The methodology adopted is such which one does not find in books. This course is divided into four sections as follows:-
1. The Basics: Understanding the concept of Futures
2. Understanding live trade and terminologies associated with Futures trade
3. Trading and managing Risk
4. Understanding Hedging and generating income through Hedging
It is an educational course to enhance your knowledge. The course does not include any tips or tricks or shortcut methods of getting rich nor does it discuss anything about technical charts, technical analysis or buy sell signals. In fact, the instructor would like to caution that trading in derivatives without proper knowledge and risk management could be disastrous.
On completion of this course, you will have a thorough knowledge and understanding of what Futures are and how they are traded. This course will be of immense benefit to those who invest in Stock market and are interested in moving on to trade in derivatives and also those who intend to make stock trading as their profession or career. Those who are already trading in derivatives will be able to enhance their knowledge and skills. This course will help the students of finance, commerce and those pursuing or intending to pursue financial management courses.
The instructor would like to make it very clear that this course is Part 1 of the Derivatives and explains only the Stock Futures. For Stock Options there is a separate course titled "Complete Understanding of Stock Options: Derivatives Part 2" where Call Options, Put Options, Option trading and Option Strategies are discussed in detail.
This course in Not specific to Indian stock market or US stock market or indices like Nifty, Sensex, NASDAQ or Dow Jones but a conceptual course applicable to all stock markets across the globe.
The speaker knows the subject well and speaks to the point without any glamour, frills or divergence thus, respecting the value of time.
This course is purely for educational purposes. Investment and trading in stock market involves financial risk. Students taking this course are advised to exercise due diligence before making any investment or trade in stock market. The instructor or any party related to this course or it's content will not be responsible for any kind of loss to anyone in anyway, due to this course.
Who this course is for:
- Those investing or trading in stock market
- Those who are interested in trading in stock derivatives specially Futures
- Those who are planning to take up stock trading as a profession or career
- Those who invest in shares but would like to progress to derivative trading and hedging
- Students of finance, commerce and business
- Students undergoing professional courses in Finance like CFA, CA, MBA etc for better understanding of the subject
You being a keen learner in quest of knowledge, our courses are designed and structured specially for you.
About our courses:
Our courses are designed to give you an in-depth knowledge in a manner which is easy to understand and difficult to forget. Emphasis is given to the fundamentals rather than bookish literature so as to make your foundation strong.
About the Instructor:
Col (Dr) Shabbar Shahid is an Army veteran and a mechanical engineer with over 38 years of experience. Qualified as a post graduate engineer coupled with a masters degree in financial management, a PhD and a passion for teaching he continues to be a learner. He is also a fellow of the Institution of Engineers (India) and a Chartered Engineer. Apart from academic qualifications and several specialized Army courses, his versatile experience in understanding people across a wide spectrum will add to the value of his lectures. Retired from the Army in 2020, he now pursues his passion for teaching and manages a small consultancy firm called PRUDENCE Engineering and Financial Consultants of which he is the founder.
Knowledge is the only instrument of production which is not subject to diminishing returns.
An investment in knowledge gives consistent returns throughout life, and then to the next generation.