Derivatives Trading

What is a derivatives trading account?

Derivatives derive their values from the underlying assets such as equity, bonds, commodities, or currency.Derivative Futures and Options trading requires a trading account as you cannot trade derivatives directly without a dedicated trading account. Trading in derivatives helps you in hedging the fluctuation and volatility in the price by paying margins.

Futures and Options contract:

You can avail Futures or options contracts to trade in derivatives by paying a minimum margin.

Let us assume you choose to sell a company’s stock at Rs.500 on the contracted date and create a Futures contract. On the contracted date if the price of the stocks goes to Rs.450, your contract will be executed on the contracted price leaving a profit.

Let us assume you choose an option contract on the same stock at the same price by paying a premium. On the contracted date, you can choose to either execute the order or not with the margin price paid while creating the contract.

Call and Put:

Call option is when you buy a stock, expecting its price to hit high in a certain time frame. Put option is when you buy the stock, expecting the price to hit low.

Open a FLATTRADE Account

Excellent platforms and apps.
₹0 brokerage and flat ₹10/- per executed order.

How to open a derivative trading account with Flattrade:

1

Click on the Sign up on the Flattrade page to navigate to the lead form.

2

Enter your contact details such as name, mobile number, and email address. Now you will get an OTP on the provided mobile number for verification.

3

Once you type in the OTP, you will be taken to the Address section. Here enter your address and then go to the bank details section.

4

Here type in your Bank account details that you would like to link to your trading account.

5

Now, choose the segment of trading as derivatives and proceed to upload the documents online.

6

After uploading the supporting documents, complete the IPV and e-sign with your Aadhaar card.

You are all set up! Enjoy trading with Flattrade at Rs.10/- per transaction!