Futures and options belong to the family of derivative financial products. The
name comes from the fact that the price of these products can be derived from
the price of a so called underlying product. Derivative products of BSE are futures
and options contracts.
With transactions on the futures and options markets investors are able to build
high yield – high risk positions, while these products also enable them to reduce
the risk of a portfolio by hedging.
Derivative products on the Exchange are standardized. The Exchange sets the parameters
of different contracts, in order to enhance liquidity and to mirror the needs
of different market players. Among these parameters the most important ones are
contract size, delivery method, expiration dates, and for options also the type
of the contract (put or call), option style (American or European) and strike