Trading in the Indian Stock Market can be done through various manners. While some choose to buy and sell stock/shares, there are others who choose to trade through derivatives. Derivatives are basically financial instruments or contracts which base their value on the performance of spot market price, (also known as the underlying variable market conditions such as bond, stock or currency. These underlying market conditions may be interest rates, market indexes, equity prices, currency exchange rates, market securities and credit. These transactions can be of different types such as futures, options, swaps, floors, caps, collars, structured debt obligations and deposits, forwards; or any combination. Further information : best shares to buy in india Derivative Trading in India usually takes place on a separate/individual derivative exchange/a separate segment of an existing stock exchange. There are two types of derivative instruments which are traded at the NSE; Fu