An essential component of a smooth trading experience in a financial segment such as derivatives is to “learn derivatives” trading. With so many fish in the sea, one might get confused about which source is better and then goes on to compare different sources.
So, we’ll talk about the various sources to learn derivatives trading in the most uncomplicated formats, and you can choose the one that suits you the best. This article will undoubtedly help clear the air and make it easier for you to take the final call.
How to Learn Derivatives Trading?
The biggest question at the starting point of this journey is how to learn derivatives trading. The answer to this question lies in deep research in both online and offline modes.
If this question were to be answered in the 1980s, the answer would have been limited to reading books and understanding the minutiae by gaining hands-on derivative trading experience.
But after the internet was introduced, the ways of learning have been revolutionized and transformed. This trend of transformation has had an upper curve due to the internet’s increasing accessibility and popularity. The process of education has been made interactive and fun.
Thus, in present times, there are two modes to learn derivatives trading – Online and Offline.
Let’s discuss each of them individually.
Learn About Derivatives Online
In this era of digitization, the means of learning have increased manifolds. The significant sources to learn derivatives trading online are:
- Stock Market Mobile Apps
- Stock Market YouTube Channels
- Online Video Courses
- Stock Market Blogs
- Stock Market Podcasts
Each of these methods has a different format that caters to a varied base of audience and learners. The aim is to assist the learners in learning with ease and enhancing their learning experience.
A lot of us are comfortable with a particular format. For instance, you would like to read information, and contrarily, your friend might be looking for an audio version of the same. Someone else might be interested in learning via videos.
These choices and preferences fill the market with various options. So, let’s talk about these sources in detail.
- Mobile Applications
Mobile applications are the fastest emerging online mode to learn derivatives trading. There are thousands of applications available in the market that offer you derivatives trading in simple forms.
To choose the right one from all these is a tedious task in itself. But, why would you be lost when you’re reading this article?
An answer to every question related to learning derivatives trading through a mobile application is here. Here is a quick snapshot:
If you ask us, there are certain factors you must look for before you invest your time, energy, and money in any mobile application. These factors are:
- The Medium of Content (video, audio, text, etc.)
- Content Quality
- Points Covered
- Is it in Line with your Requirement?
- Duration of the Course
- Accessibility to the Course Material
- Language of the Course
You should make a checklist of all these aspects, look for them, and select the application that meets most of the criteria. One mobile application that unquestionably fulfills these aspects is Stock Pathshala.
Stock Pathshala is a stock market e-learning platform that is equipped with various facilities. The mobile application is loaded with courses that cover multiple aspects of the stock market.
These courses are multilingual – English, Hindi, Gujarati, Tamil, Telugu, and many more are to be added soon. The language used is elementary and easy to understand and intend to cover every fundamental aspect.
The courses are segregated into beginner, intermediate, and advanced levels. The courses are uploaded in various media forms – Audio, Text, and Video. You can choose the type that enhances your learning process.
In addition to these, you also have access to their unique feature called Shorts, which provides you with crispy videos that explain the stock market basics in less than a minute. Your journey to learn derivatives trading is simplified with this feature.
Moreover, this cake is iced with articles, videos, and audios that teach various points to help the learner learn stock market quickly.
If we were to list a few courses dedicated to learning derivatives trading, they are:
- Introduction to Derivatives
- Gateway to Futures & Options
- How to Get into Derivatives Trading
- Getting into Futures & Options
- Derivatives Trading in India
Lastly, Stock Pathshala offers special courses by Sensibull. These courses are to be bought separately, and their price ranges from ₹900 to ₹4500. Currently, three courses are live:
- The Ultimate Options Strategies
- Options Greeks
- Basics of Options Trading
- How call option works
The majority of the features listed above are available in the free version of the Stock Pathshala. The rest can be accessed by subscribing to the premium version. The subscription fee for this application is less in comparison to the other options.
The next way in line is learning via free content on YouTube. You watch educational videos to learn derivative trading, prepare notes and learn.
Several online tutors upload videos while explaining the complexities of derivatives trading. These videos are generally available for free, but the content’s quality can’t be evaluated beforehand.
Many educators use YouTube as a platform to give free demo videos and convert them into course subscriptions. With this, we should move ahead to talking about online video courses – paid or free.
- Online Video Courses
With the reduction in internet costs, many learners are choosing online video courses. According to many scientific studies, videos are the most efficient and effective form of learning.
So, the demand for video-based courses is skyrocketing. This is one of many reasons why educators are switching to providing derivatives courses in India through videos (pre-recorded or live). It makes the processing of understanding the basic concepts like call option, put option, futures, etc very convenient.
These courses are generally accessible after paying a hefty amount as a fee. In this case, the biggest dilemma is an expensive course that could turn out to be rubbish, and a cheap course could be of high value.
Thus, checking the background before paying is a must.
Another uprising method of learning is by reading detailed blogs. As the average time spent on the internet is increasing, multiple niche based blogs have come up. These are either written by expert derivatives traders or the experts in this field.
These blogs contain in-depth concepts and every essential aspect necessary to learn derivatives trading. This way is beneficial for people who love to read and gain knowledge.
Podcasts are climbing the staircase of popularity fast. They are gaining popularity in India, which is why many educators are commencing their podcast courses.
The most beneficial thing about podcasts is that you can multitask. You might be doing house chores or driving and still be able to grasp the concepts of derivatives trading.
It would be biased not to discuss the offline methods to learn derivatives trading.
Learn About Derivatives Offline
There are some exceptions in this digital era. These people love to learn via offline methods. Some of the popular offline ways to learn derivatives trading are:
- Introduction to Futures & Options Markets
It is authored by Mr. John Hull. This book is written for people who have a mathematical background. It is suggested to be one of the best books on derivatives trading for beginners.
A person with detailed knowledge of mathematical concepts can master this type of trading with ease.
- Derivatives – The Wild Beast of Finance
The author of this book is Mr. Alfred Steinherr. This book is considered one of the best books globally for learning the concepts of derivatives. It portrays the actual perspective of the global derivatives market.
It was first published in 1998, and it talked about predictions of the prevailing conditions, and the foresight was insightful in large quantities.
- Merton Miller on Derivatives
It is a collection of essays on derivatives penned by the Nobel Laureate Mr. Merton H. Miller. These essays address many critical issues and help in demystifying derivatives trading.
This book offers a rare insight into the enticing world of derivatives. It also houses objective evaluations of financial disasters like Barings Bank, Procter & Gamble, etc.
- All About Derivatives
This book, authored by Mr. Michael Durbin, has an excellent introductory work on derivatives trading.
It includes all fundamental concepts related to derivatives, and these are presented in a unique way to enhance the learners’ clarity. The method of explaining is uncomplicated so that it benefits readers.
It covers various concepts like derivatives types, settlement, valuation, payoff, cost of carrying, etc. The book is highly helpful for beginners as well as professionals.
- Interest Rate Swaps and Derivatives (by Howard Cord)
Howard Cord, the author of this book, tries to focus on developing an in-depth knowledge of interest rate swaps and other types of derivatives.
It is a successful attempt to highlight the real significance, i.e., risk management tools. These financial instruments are used to explore new opportunities in the trading industry.
The basic concepts of the topic are presented distinctively. The book is immensely helpful for students and a great source of reference for professionals.
- Offline Courses
Many people love the experience of learning while sitting in a classroom or by being surrounded by like-minded people. This experience is imitated only in offline or classroom courses.
Many educators feel confident in providing the opportunity to learn derivatives trading in the form of offline courses.
Generally, these courses are available in the form of personal tutors or traders who are keen on sharing their trading experiences.
- Practical Implementation
The best teacher is time and experience. Nothing is further from the truth. The experiences of trading derivatives will provide you with the best of lessons. But this task can be expensive.
Since investing might eat up your hard-earned money, it is suggested to avoid this path of learning.
To learn derivatives trading, you can choose from a plethora of methods. You have the liberty to choose from offline or online ways. Though many traders call this type of trading complicated to understand, it has been simplified by the various formats. You can choose from the best stock market books or can go for other methods too.
The best and most popular one being – Mobile Applications. The popularity is credited to the accessibility anytime, anywhere. Not just the stock market, every aspect of learning has been transformed into online learning or e-learning. You can also learn about derivatives by understanding various examples like call option example, examples of put option, futures, etc.
So, if you wish to learn derivatives trading on the go, you must look out for the most suitable mobile application for you. We hope you check the checklist before subscribing to any course.
Stock Pathshala is an application that will assist you in mastering the concepts of the stock market. The features are unique, and the information is presented in an interactive and engaging format.
You can download the Stock Pathshala app here.
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