Derivative Trading Journey in Indian Stock Market


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The derivative trading journey in India is going to complete 20 years in June 2020. This journey is very long and interesting. 

And the developing country like India it is very important part of economy.

Initially Nifty started with Cash Segment only in 1996. Then after almost 5 years latter there came  a derivative segment in May 2000.

What is Derivative means?

Derivative means a financial instrument which derive its value from some underlying assets.

This underlying assets may be equities, stocks, debt, bonds, currencies and also Indices.

Let's see the Journey of Derivative in India step by step

1. Nifty Future trading started on NSE - June,12, 2000
2. Nifty Option trading started on NSE -  June, 4, 2001
3. Stock Option trading started on NSE - July, 2 , 2001
4. Stock Future trading started on NSE - Nov, 9, 2001
5. Currency Derivative trading started on NSE - Aug, 29, 2008
6. Interest Rate Derivative trading started on NSE - Aug, 31, 2009
7. Introduction of European Style Stock Option - Oct, 28, 2010
8. Currency Option started on NSE - Oct, 29, 2010.

Now Future and Option is become life line of Stock Market. Future and Option is actually a Hedging tool in which we can perfectly manage our Risk and Reward, More profit and limited losses. 

It give us several type strategies to manage out our Profit and loss. We will going to see in our upcoming articles.

Disclaimer : This article is only for knowledge and information sharing and not for any type of recommendation.

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