The bourse will introduce weekly futures and options contracts expiring on every Thursday of the week, excluding monthly expiry week, BSE — formerly known as Bombay Stock Exchange — said in a circular.
Leading stock exchange Bombay Stock exchange will pintroduce weekly futures and options contracts on Sensex 50 index from 26 october 2018.
The bourse will present 7 weekly futures and options contracts lapsing on each Thursday of the week, barring month to month expiry week, BSE – some time ago known as Bombay Stock Exchange – said in a press release.
On the off chance that Thursday is an occasion, at that point contract expiry will be on the working day before that. New sequential week by week future and alternatives contracts will be presented after expiry of the individual week’s agreement, it included.
“The exchange shall introduce weekly futures and options contracts on S&P BSE Sensex 50 index with effect from October 26, 2018,” the bourse noted.
This index was propelled in December 2016 to quantify the performance of the 50 biggest BSE-listed organizations.
Derivative in financial markets typically refers to a forward, future, option or any other hybrid contract of pre-determined fixed duration, linked for the purpose of contract fulfilment to the value of a specified real or financial asset or to an index of securities.
Broadly, there are two types of derivative contracts — futures and options. A futures contract means a legally binding agreement to buy or sell the underlying security on a future date, while options contract gives the buyer or holder of the contract the right (but not the obligation) to buy or sell the underlying asset at a pre-determined price within or at the end of a specified period.