Derivatives, Futures & Options Course: Admissions 2024, Entrance Exams, Top Colleges, Fees, Syllabus, Career Scope
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
- What is Derivatives, Futures & Options Course?
- Derivatives, Futures & Options Eligibility Criteria
- Top Derivatives, Futures & Options Entrance Exams
- Derivatives, Futures & Options Subjects
- Top Derivatives, Futures & Options Colleges
- Derivatives, Futures and Options Top Recruiters
- FAQs Related to Derivatives Futures and Options
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:
Level II:
Level III:
|
|
AMU |
June’24 (Tentative) |
|
URATPG |
To Be Notified |
|
LUACMAT |
Jul '24 (Tentative) |
|
SPSAT |
Jul '24 (Tentative) |
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 |
---|---|
INR 20,000 |
|
INR 4.1 L - 4.3 L |
|
INR 7,900 |
|
INR 4,500 - 16,500 |
|
NA |
|
NA |
|
NA |
|
INR 8.8 L |
|
NA |
|
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?
Q: What are the kinds of assets included in derivatives?
Q: What is hedging?
Q: What is the difference between futures and options?
Q: Which skills are required to make a career in the field of Finance?
Q: Which are the top finance exams for the Derivatives course?
Q: What are the career options after studying Finance?
Q: Which are the top recruiters for finance graduates?
Q: What is the average salary on an Investment Banker in India?
Q: Which courses can I opt for if I wish to study derivatives?
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