EQUITY & DERIVATIVE TRADING

Integrated Master Securities (P) Limited has a strong network of sub-brokers and branches to cater to the needs of various investors located across the country. In keeping with its philosophy of constant upgradation of our services, we have acquired membership of the Derivatives Segment on the National Stock Exchange as a Clearing Member. We believe that the derivatives market would play a very crucial role as the equity markets get more and more volatile.

We settle a responsibly fair volume of trades of our trading members (nearly Rs. 500 crores of trades per day).

^FUTURES

Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favour (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading.

^OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.

^BENEFITS OF EMPLOYING DERIVATIVES

• Benefits available to investors
  Investors would be always looking for some hedging tool to protect themselves from the high volatility. This is possible with the use of Options and Futures Contracts traded in the Derivatives Market.
  
• Hedging is the process of reducing exposure to risk
  Hedging comprises any act that reduces the price risk of a certain position in the cash market. Futures contracts continue to be an important means of hedging as they enable the market participants to alter the risks they face from unexpected adverse price changes.
  
• Benefits available to traders and short-term players
  With the discontinuation of the traditional Badla system, short-term players and traders in the equity market can use this segment for Arbitrage and Speculation.
  
• Benefits available to speculators
  Speculators can trade in the Index Futures market where they will have the facility of keeping an open position for upto 3 months. Generally, people understand the market through the indices rather then stocks. Further, 'Stock Futures' has been introduced at both the exchanges.