Derivatives, Futures & Options Course: Admissions 2024, Entrance Exams, Top Colleges, Fees, Syllabus, Career Scope

Updated on Apr 8, 2024 03:28 IST
Pragati Singh

Pragati SinghSenior Executive - Content

Derivatives, Futures & Options (DFO) courses are designed to equip individuals with the necessary knowledge and skills to navigate the complexities of derivative instruments in the Indian financial market. These courses cover fundamental concepts such as the types of derivatives, their applications in risk management and speculation, valuation techniques, trading strategies, risk management practices, and the regulatory framework governing derivatives trading. 

Eligibility criteria for these courses vary, with basic programs often requiring graduation in any discipline, while advanced programs may prefer a Bachelor's degree in Finance, Commerce, Economics, or a related field, along with possible work experience in the financial sector. Some programs may require candidates to clear entrance exams such as those conducted by the National Institute of Securities Markets (NISM) or university/institute-specific exams. Top colleges and institutions offering DFO programs or related courses include the National Institute of Securities Markets (NISM), Indian Institute of Banking and Finance (IIBF), The Financial Markets Institute (FMI), Management Development Institute (MDI), National Institute of Financial Management (NIFM), and selected Indian Institutes of Management (IIMs)

These courses cater to different levels of knowledge and career aspirations, often incorporating practical learning elements such as case studies, simulations, and guest lectures from industry professionals. Upon completion, individuals with DFO knowledge can pursue various career opportunities in financial institutions including investment banks, brokerage firms, hedge funds, and risk management departments.

Derivatives, Futures & Options Course Details: Highlights

Below table covers all the course highlights related to Derivatives, Futures & Options (DFO) courses:

Particulars

Details

Course Levels

Diploma and Certificates

Eligibility

Class 10 or Class 12

Admission

Merit-based 

Top Colleges

Symbiosis School for Online, CU, 

Salary Range

INR 3 - 8 LPA

Top Recruiters

HDFC, Bain & Company, Accenture, etc.

Job Positions

Derivatives Trader, Derivatives Structurer, Derivatives Quarter/Analyst, etc. 

Note- This information is sourced from the official website and may vary.

What is Derivatives, Futures & Options Course?

A Derivatives, Futures & Options Course covers financial instruments used to manage risk and speculate on future prices. Here's a breakdown of what you might learn in such a course:

  • Derivatives Basics: This covers what derivatives are and how they are used in financial markets. You'll learn about the concept of hedging, which is using derivatives to protect yourself from price movements in other assets.
  • Futures Contracts: You'll delve into futures contracts and agreements to buy or sell an asset at a specific price on a future date. The course will explain how futures contracts work, how they are priced, and how they are used for hedging and speculation.
  • Options Contracts: Options contracts give you the right, but not the obligation, to buy or sell an asset at a certain price by a certain time. The course will cover different types of options (calls and puts), how they are priced, and how they are used for various investment strategies.
  • Trading Strategies: You'll likely learn about different strategies for trading derivatives, including basic option spreads and futures hedging strategies.
  • Risk Management: Since derivatives can be complex and risky, a well-designed course will cover how to manage the risks involved in derivatives trading.

The level of detail and specific topics covered will vary depending on the course provider and its target audience (beginners, advanced traders, etc.).

Derivatives, Futures & Options Eligibility Criteria 

Refer to the table below to learn about the Derivatives, Futures & Options eligibility criteria course level wise:

Course Level

Eligibility Criteria

Certificate Level

Basic understanding of the stock market

May require completion of a preparatory module on financial markets.

Minimum age requirement (usually 18 years old).

Diploma Level

Completion of a certificate course in derivatives or equivalent knowledge.

May require a foundational understanding of financial markets and instruments.

Top Derivatives, Futures & Options Entrance Exams

Candidates who wish to pursue a career in the financial field can take the following exams after pursuing related courses at the graduation level:

Entrance Exams

Exam Dates

Exam Schedule

CFA 

Level I:

  • February 19-25, 2024
  • May 15-21, 2024
  • August 20-26, 2024
  • November 13-19, 2024

Level II:

  • May 22-26, 2024
  • August 27-31, 2024
  • November 20-24, 2024

Level III:

  • February 15-18, 2024
  • August 16-19, 2024

CFA 2024 Schedule 

AMU

June’24 (Tentative)

AMU 2024 Schedule

URATPG

To Be Notified

URATPG 2024 Schedule

LUACMAT

Jul '24 (Tentative)

LUACMAT 2024 Schedule

SPSAT

Jul '24 (Tentative)

SPSAT 2024 Schedule

NOTE: This information is sourced from the official website of the institute/exam.

Derivatives, Futures & Options Subjects 

Below is a table outlining various subjects related to Derivatives, Futures, and Options in India:

Subject

Description

Financial Derivatives

Introduction to derivatives, types of derivatives, underlying assets, features, and significance.

Futures Market

Mechanics of futures markets, contract specifications, trading mechanisms, clearing, and settlement processes.

Options Market

Basics of options, types of options, option pricing models, Greeks, strategies, and applications.

Risk Management in Derivatives

Risk types associated with derivatives, hedging strategies, risk assessment, and mitigation techniques.

Regulatory Framework

SEBI regulations governing derivatives markets, compliance requirements, margin regulations, and reporting.

Trading Strategies and Techniques

Fundamental and technical analysis, trading strategies using futures and options, spread trading, and more.

Derivatives Pricing Models

Black-Scholes model, Binomial model, factors affecting options pricing, volatility modeling, and calibration.

Market Analysis and Research

Fundamental analysis of derivatives markets, market indicators, technical analysis tools, and research methods.

Commodity Derivatives

Overview of commodity derivatives markets, types of contracts, trading strategies, and regulatory aspects.

Equity Derivatives

Introduction to equity derivatives, stock futures, stock options, index derivatives, and trading strategies.

Currency Derivatives

Basics of currency derivatives, types of contracts, trading mechanisms, hedging strategies, and regulatory norms.

Interest Rate Derivatives

Interest rate futures, interest rate swaps, caps, floors, and other interest rate derivatives instruments.

Clearing and Settlement Mechanisms

Clearinghouses, settlement processes, margin requirements, default procedures, and risk management practices.

Case Studies and Practical Applications

Real-world case studies, simulation exercises, hands-on trading platforms, and application of theoretical concepts.

Also Read: Top finance colleges in India 

Top Derivatives, Futures & Options Colleges

Colleges for Derivatives, Futures, and Options courses are as follows:

College

Tuition Fees

Amity University Online, Noida

INR 20,000

NISM

INR 4.1 L - 4.3 L

ISBMA

INR 7,900

BSE Institute Limited

INR 4,500 - 16,500

ICFL, Mumbai

NA

Edification Academy

NA

Kredent Academy

NA

School of Economics and Commerce

INR 8.8 L

Marwadi University

NA

Education Lanes

INR 65,000 - 1.3 L

Note- This information is sourced from the official website/ counselling body and may vary.

Derivatives, Futures & Options (DFO) Careers, Scope, Job Profiles, Salary, and Recruiters

The growth in this field of finance is huge. The experience earned at the intern level also holds good value. A career in Finance has a lot of scopes and is one of the most demanding and ever-growing sectors in the country. Mentioned below are some of the job profiles that the students can opt for after studying the Derivatives Futures and Options course.

Job Title

Job Description

Average Annual Salary 

Derivatives Trader

Executes trades involving derivative instruments (futures, options) on behalf of clients or financial institutions, aiming to generate profits.

7-12 LPA (varies based on experience, firm, and performance)

Derivatives Structurer

Designs and develops customized derivative products to meet client needs, considering risk-return profiles and market conditions.

8-15 LPA (varies based on experience, firm, and expertise)

Derivatives Quarter/Analyst

Develops and implements quantitative models for valuing and analyzing derivative instruments, using complex mathematics and financial engineering techniques.

8-15 LPA (varies based on experience, firm, and skillset)

Risk Manager (Derivatives)

Identifies, assesses, and mitigates risks associated with derivatives trading activities within a financial institution. Develops and implements risk management strategies.

7-12 LPA (varies based on experience, firm, and qualifications)

Sales Associate (Derivatives Products)

Sells derivative products (options contracts, structured products) to clients, explaining features, benefits, and risk profiles. Focuses on building relationships and achieving sales targets.

5-8 LPA (varies based on experience, firm, and performance)

Portfolio Manager (with DFO expertise)

Manages investment portfolios that incorporate derivatives for hedging or enhancing returns. Requires strong understanding of DFO instruments and risk management.

10-20 LPA (varies based on experience, firm, performance, and portfolio size)

Note- The above salary has been taken from external sources, and hence may vary.

Derivatives, Futures and Options Top Recruiters

The top recruiters in this field are as follows:

List of Top Recruiters

HDFC

Bain & Company

Accenture

McKinsey & Company

ICICI Bank

EY (Ernst & Young)

Kotak Mahindra Bank

Deloitte Consulting

Wells Fargo

PwC

TCS

KPMG

FAQs Related to Derivatives Futures and Options

Q: What are derivatives?

A: Derivatives are financial contracts between two parties whose value is based on the value of underlying assets. 

Q: What are the kinds of assets included in derivatives?

A: Assets such as indexes, bonds, currencies, commodities, stocks, interest rates, etc. are included under derivatives.

Q: What is hedging?

A: Hedging is a risk management strategy for which derivatives are used. Hedging is employed to offset losses. Hedging requires the investor to pay money for the protection of assets in form of premiums. 

Q: What is the difference between futures and options?

A: The futures derivative binds the buyer in a contract with buying and selling the asset at preset price and date. On the other hand, the options derivate gives the right to the buyer to sell or buy the asset at a preset price but the owner can decide the date of maturity. 

Q: Which skills are required to make a career in the field of Finance?

A: Students who wish to pursue a career in finance must have strong mathematical and analytical skills, an eye for detail, objectivity, quantitative skills, etc. 

Q: Which are the top finance exams for the Derivatives course?

A: Students can appear for exams such as CFA, ICSI, ICAI, CS, etc. 

Q: What are the career options after studying Finance?

A: Students have a plethora of job opportunities after they have studied finance. They can opt for careers such as Financial Risk Analyst, Analyst, Chartered Accountant, Public Accountant, Wealth Manager, Investment Banker, etc. 

Q: Which are the top recruiters for finance graduates?

A: Top companies such as JP Morgan, Barclays, India Bulls, Deloitte, Wells Fargo, etc. hire finance graduates. 

Q: What is the average salary on an Investment Banker in India?

A: The average salary of an Investment Banker in India is approximately INR 9.42 LPA. 

Q: Which courses can I opt for if I wish to study derivatives?

A: Students who wish to study derivatives can opt for various finance courses such as MCom, BCom, MBA in Finance, BBA in Finance, CFA, etc. 

Popular Derivatives, Futures & Options Colleges in India

Following are the most popular Derivatives, Futures & Options Colleges in India. Learn more about these Derivatives, Futures & Options colleges (Courses, Reviews, Answers & more) by downloading the Brochure.
1 Course
24.2 L
25 LPA
2 L - 10 L
3.75 - 7.25 LPA

Banking, Finance & Insurance Applications open. Apply Now

90 K
5.0
4 Courses
540 - 27.5 K
5.5 LPA
75 K - 4.28 L
3.8
Ranked #3 Private University in India. Placement with Fortune 500 Companies
6.75 L
4.9

Popular Private Derivatives, Futures & Options Colleges in India

2 Courses
10.85 L
5.0
1 Course
4.2 L
3.2
11 Courses
2 L - 10 L
3.75 - 7.25 LPA

Banking, Finance & Insurance Applications open. Apply Now

2.4 L
4.35 L - 9.4 L
4.35 - 6 LPA

Banking, Finance & Insurance Applications open. Apply Now

10.9 L - 16 L
13.3 LPA

Banking, Finance & Insurance Applications open. Apply Now

Popular Derivatives, Futures & Options UG Courses

Following are the most popular Derivatives, Futures & Options UG Courses . You can explore the top Colleges offering these UG Courses by clicking the links below.

UG Courses

Popular Derivatives, Futures & Options PG Courses

Following are the most popular Derivatives, Futures & Options PG Courses . You can explore the top Colleges offering these PG Courses by clicking the links below.

PG Courses

qna

Student Forum

chatAnything you would want to ask experts?
Write here...