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Why Anand Rathi for Derivatives?
Simple and intuitive derivative trading backed by expertise
Competitive Brokerage Rates
Some of the most competitive market rates in our Value Added Scheme (VAS) to minimize trading costs
Seamless Trading Platforms
State-of-the-art digital platforms and TradeMobi app offering rapid order execution, live market data, and more
Expert Research & Analysis
Timely reports across our platforms and via Telegram for informed decision-making on the go
Personalized Research
Market Reports
Regular, in-depth reports on market trends, economic indicators, and specific derivative instruments
Market Reports
Regular, in-depth reports on market trends, economic indicators, and specific derivative instruments
Advanced Trading Tools
Cutting-edge trade execution platforms and real-time analytics for quick and effective trading
Educational Webinars
Exclusive webinars led by our market experts around derivative basics as well as advanced trading strategies
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Advanced Tools & Calculators
Cutting-edge technology to match the pace of the derivative markets
All about Derivatives
Derivatives are financial contracts that derive their value from an underlying asset. They are associated with stocks, commodities, currencies, and even indices. They offer leverage like heightened market exposure, hedging opportunities, and even growth opportunities irrespective of market direction.
Know Your Derivatives
- Futures: Contracts to buy or sell an asset at a predetermined price on a specified future date
- Options: Contracts that let you to buy or sell an asset at a specific price before a predetermined date without any obligation, offering flexibility of choice
Why Derivatives?
Derivatives go beyond traditional asset classes as potentially valuable trading tools and hedges for a well-balanced portfolio.
Lean on Leverage
Amplify potential gains on market movements and enjoy a more flexible portfolio.
Lean on Leverage
Amplify potential gains on market movements and enjoy a more flexible portfolio.
Hedge Against Risk
Offset risks associated with fluctuations in stock prices, commodities, or currencies.
Diversify Your Portfolio
Maintain a stable portfolio even in market volatility with non-traditional derivatives that move independently of other investments.
How to Start Derivative Trading?
Here's a step-by-step guide to start your derivative trading journey with Anand Rathi:
1.
Open a Derivatives Trading Account
Open a derivatives trading account online. This account allows you to access all derivatives products and trading services.
2.
Complete KYC
Submit key documents such as ID proof, address proof, PAN card, and current bank information.
3.
Choose Your Brokerage Plan
Select a brokerage plan that suits your trading needs and goals based on your trading frequency and investment size.
4.
Meet Margin Requirements
Fund your account with the required margin to start trading. Margins provide a buffer against potential market movements, helping you manage risk effectively.
5.
Access The Trading Platform
Explore the web portal and download the mobile app to explore live market data, trading tools, and personalized account features.
6.
Begin Trading
Start placing orders and managing your positions directly with real-time updates on the broker terminal and app.
Derivatives FAQs
Your Questions, Answered
What are derivatives, and how do they work?
Derivatives are financial contracts that derive their value from an underlying asset. They are usually used by traders for hedging risks, taking leveraged positions with limited exposure to the underlying asset, and diversifying portfolios.
How is trading derivatives different from trading traditional stocks?
Unlike stocks, derivatives do not represent ownership in a company but are contracts tied to the price of an underlying asset. Derivatives can also be more complex due to leverage and margin requirements, requiring a solid understanding of market dynamics.
How do I start trading derivatives with Anand Rathi?
Open a derivatives trading account with us by completing the KYC process and meeting margin requirements. Once set up, you can choose a brokerage plan and start trading on our platform with access to expert insights and research tools.
What are the risks involved in derivatives trading?
Derivatives are leveraged instruments, allowing traders to control a larger position size with a small capital deployment. While this can be beneficial when profits are made, losses can potentially be unlimited if stop losses or risk-defined strategies are not used.
Are there tools to help me plan my derivative strategies?
Yes, Anand Rathi offers a range of tools, including options strategy builders and futures price calculators, to support your decision-making and optimize your strategies.
What is margin in derivatives trading, and how does it work?
In derivatives trading, a margin is the initial amount you need to deposit to open a position. It is effectively a form of security for both the investor and broker, and help manage risk in case the price fluctuates significantly. Margins can vary depending on the type of derivative and the level of leverage used.
Can I lose more than my invested amount in derivatives trading?
Yes. The marginal amount required for derivative trading is only part of the actual value of the underlying position. It is possible for losses to exceed your initial margin if the market moves significantly against your position. In such scenarios, the broker issues a margin call, requiring you to add additional funds to maintain the position.
What are some key things to remember when trading derivatives?
To trade derivatives safely, keep these points in mind:
- Understand the product and the underlying asset.
- Use leverage carefully and avoid overextending your capital.
- Set clear stop-loss limits to protect against unexpected losses.
- Stay informed of market trends and consult expert advice when needed.
How can derivatives be used for hedging?
Hedging with derivatives helps offset potential losses in your main portfolio. For example, if you hold stocks of a certain company and are worried about a decline in prices in the near term, you can buy put options to 'hedge' your stock position. If you are right, the profit on the put option can offset the loss of on the portfolio, and if the stock moves up instead, the portfolio profit can make up for loss incurred in the put option.
What is the role of stop-loss orders in derivatives trading?
A stop-loss order is a risk management tool that automatically closes your position if the asset's price reaches a specific level, limiting potential losses. This tool is especially useful in financial derivatives, where market movements can runaway losses if unchecked.
Can I hold a derivative contract until it expires?
Yes, you can. However, you must monitor the position as the expiration date approaches. Some contracts are automatically settled, while others may require you to take delivery of the underlying asset if the position is 'in the money' (ITM).
What are the tax implications of trading derivatives?
In India, profits from Futures and Options (F&O) trading is considered non-speculative business income. This income will be taxed based on your applicable tax slab. Trading also involves other taxes such as Securities Transaction Tax (STT), which is directly deducted by the broker when orders are executed.
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Anand Rathi Share and Stock Brokers Ltd.
SEBI Registration No.: INZ000170832 (BSE-949 | NSE-06769 | MSEI-1014 | MCX-56185 | NCDEX-1252), CDSL & NSDL: IN-DP-437-2019. *Research Analyst - INH000000834. PMS: INP000000282 is Registered under "Anand Rathi Advisors Limited" | MBD-INM000010478 is Registered under "Anand Rathi Advisors Limited"| NBFC is Registered under "Anand Rathi Global Finance Limited" Regn. No.: B-13.01682 | Insurance is Registered under "Anand Rathi Insurance Brokers Ltd." License No. 175. Insurance Corporate Agent: CA1048 (This registration shall be valid from 04-Jun-2025 to 03-Jun-2028).
Anand Rathi International Ventures (IFSC) Private Limited.
SEBI Registration No.: INZ000292939 (INDIA INX Member Code: TM - 5064 | NSE IX Member Code: TM -10048, IIBX Member Code: TM – 2011), IIDI DP ID 350071 AND Registration No.: IFSCA/DP/2022-23/007, IFSCA/CMI/Distributor/2023-24/0002. CIN No.: U65999GJ2016PTC094915. For any complaints email at Ifscgrievance@rathi.com. Regulator: International Financial Services Centres Authority (IFSCA)- https://www.ifsca.gov.in/
Disclaimer:
Equity: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
The securities are quoted as an example and not as a recommendation.
Mutual Funds: Mutual Fund investments are subject to market risks, read all scheme related documents carefully before Investing. AMFI-Registered Mutual Fund Distributor: ARN-4478 (Initial Registration 4th Feb, 2003 & Valid From 2nd April, 2025 - 1st April, 2028) : Anand Rathi Share and Stock Brokers Ltd. | ARN-111569: Anand Rathi Wealth Limited | ARN-100284: AR Digital Wealth Private Limited.
IPO: Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
*Third Party products: All third-party products like PMS, Mutual Funds, Fixed Income Products, IBS, Bonds, AIFs are not Exchange traded product and "ARSSBL" is just acting as distributor. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.
MTF: MTF is subject to the provisions of SEBI Cir. CIR/MRD/DP/54/2017 dt June 13, 2017 & terms and conditions mentioned in rights and obligations statement issued by the ARSSBL
Investment Baskets: Baskets are not Exchange traded product, all disputes with respect to this activity, would not have access to Exchange investor redressal forum or Arbitration mechanism.
Research Analyst: The views expressed in this website accurately reflect the personal views of the analyst(s) about the subject securities or issuers and no part of the compensation of the research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst(s). The advertisment are bound by stringent internal regulations and also legal and statutory requirements of the Securities and Exchange Board of India (hereinafter "SEBI").
Certification: Registration granted by SEBI and certification from NISM is in no way a guarantee of performance of the intermediary or provides any assurance of returns to investors.
*Award Winning Research: Anand Rathi Share and Stock Brokers Limited (Research Analyst) was awarded as "Best Equity Advisor" at World BFSI Congress & Awards 2022
*Client Data: Client data shown on this website is as on 31st March 2025
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Attention Investors:
- For all communication related to vulnerability reporting, security alerts, or any other suspicious activity related to cyber security, contact priyanksheth@rathi.com/+91-22-62811514"
- For any complaints email at grievance@rathi.com, For DP related queries/complaints email at dp@rathi.com
- Filing of complaints on SCORES – Easy & quick a. Register on SCORES portal b. Mandatory details for filing complaints on SCORES: I. Name, PAN, Address, Mobile Number, Email ID c. Benefits: I. Effective communication ii. Speedy redressal of the grievances.
- Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
- Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
- Pay 20% upfront margin of the transaction value to trade in cash market segment.
- Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 and BSE vide notice no. 20200731-7 dated July 31, 2020 and 20200831-45 dated August 31, 2020 dated August 31, 2020 and other guidelines issued from time to time in this regard
- Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month.
IPO Disclosure:
Anand Rathi Share and Stock Brokers Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The DRHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the Book Running Lead Managers, Nuvama Wealth Management Limited at www.nuvama.com, DAM Capital Advisors Limited at www.damcapital.in, and Anand Rathi Advisors Limited at www.anandrathiib.com, the websites of the stock exchange(s) at www.nseindia.com and www.bseindia.com, respectively. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see 'Risk Factors' of the DRHP. Potential investors should not rely on the DRHP for any investment decision.