Why Derivatives?

Derivatives are financial contracts which derive their value from an underlying asset ( like Shares / Commodities / Currencies ). They are mainly dividend into two types i.e. Futures and Options contracts. Unlike equities, Derivatives are traded in lot size and they expire on a timely basis.

  • Hedging: Derivatives can be a good tool to reduce the risk of Portfolio against market volatility
  • Margin: Trade in futures by paying just a fraction of the value ( i.e the margin money )
  • Premium : Trade in Options by just paying the premium amount (or margin money in case of selling options )
  • Settlement : No delivery is required, settlement is done only by paying or receiving the difference in value.
  • Diversification: Derivatives contracts are available for commodities, currencies, stocks and Index’s.
  • Arbitrage: Derivatives can be used for Simultaneous buying and selling of securities, currency, or commodities in different markets in order to take advantage of differing prices for the same asset.
  • Basket buying : Instead of buying individual stocks, derivatives of various indexes can be bought.


Why trade with HEM?

  • We are trusted by more than 1 Lakh clients.
  • We have an incredibly well connected franchise network of more than 200 business locations spread across India.
  • Experience of more than 35 Years in the financial markets.
  • We help our clients stay ahead and informed by our cutting edge fundamental and technical research.
  • We offer multiple financial solutions for all your stock market needs.
  • We have a user friendly and intuitive trading platform across all devices. Check <Link of the trading software> and find out more.
  • Our dedicated and expert team of researcher work relentlessly to provide you multiple reports for a definitive advantage.
  • We have a simple pricing philosophy – “Low brokerage and no hidden costs”

What are Equity Derivatives?


What is Commodity Trading?

Attention Investor