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

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How to open a derivative trading account with Flattrade:


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


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.


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.


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


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


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.0 Brokerage!