Derivatives

WHAT IS DERIVATIVES?

Derivatives as the name suggests is a contract derived from the underlying asset. In stock markets derivatives are based on equity shares, indices, currencies and commodities.

We use the Stock Exchange Platform for investing in Derivatives. During the trading hours you can buy the shares or sell them anytime during the day.

WHO IS QUALIFIED TO INVEST?

Every class of investor be it retail, corporates, NRI, Foreign investors etc are all eligible to invest

However, we do not advise retail investors to write derivatives contract since it is a highly leverage product and hence very risky

HOW TO INVEST?

You must open an account with your broker. Additional details of your financial soundness should also be submitted to prove that you have the financial capability of participating in a highly risky market. You are advised to take guidance from our research department. We give calls on derivatives market and these are tagged as high-risk calls.

SAFETY

Markets are highly volatile hence it is not safe to invest in derivatives unless you are constantly in touch with the price movements. Negligence in not tracking your positions can lead to huge losses.

LIQUIDITY

This is the most liquid class of financial assets. The turnover in Derivatives is almost 15 times + than the cash segment volumes. Hence most of the Derivative contracts are highly liquid and you can enter and exit at any point of time and at very competitive prices

RETURNS

Returns are same as those of equity markets. However due to large volatility you can make big money or lose also

TAXATION

Derivatives profits are taxed as business income. Your applicable tax rate be it 30% or lower will apply. There is no long term or short-term gains here, every transaction is marked to market on daily basis

REGULATORY FRAMEWORK

Derivatives contracts are regulated by the regulations prescribed by SEBI. There is a very strict Margin regime. Initial margin, SPAN margin and Exposure margins rates are all fixed by SEBI. Penalty for non-payment of margins is as high as 5% per day. Hence appropriate money should be given upfront to the broker for dealing in derivatives

COST OF OUR SERVICES

Please look at our charges list for all our services

RESEARCH SERVICES

Our company is registered Research analyst and we provide research services on daily, weekly and monthly basis.