Derivatives | Episode Two: Types of Derivatives Contracts, Differences Between Equities and Derivatives, and Making Money in Derivatives

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NSE Derivatives
In this episode, NSE’s Rufus Gitau discusses the different type of derivatives including forward, futures, options, and swap contracts. Rufus points out the difference between trading derivatives and equities, and how individuals can make money through derivatives through the two-way market, when the market goes up or down. 
  • The NSE offers futures contracts based on equities: One based on the nSE 25 and another based on a select number of single stocks.
  • The NSE allows trading in derivatives through a derivatives account created by a broker, then a trader can obtain direct market access via an NSE portal.
  • There are 7 approved derivatives brokers: AIB AXYS, Sterling Capital, SIB, Genghis Capital, Faida Investment Bank, NCBA and Kingdom Securities.
  • 99% of derivatives traded on the NSE are from retail investors.

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