MARKET

SEGMENTS
OF NATIONAL
STOCK
EXCHANGE

NSE consists of five segments

Wholesale Debt Market segment
Capital Market segment
Futures and Options Trading
Currency Futures Trading
Interest Rate Derivatives segment

WHOLESALE DEBT
MARKET SEGMENT
This segment provides trading facilities for a variety of debt
instruments including:
Government Securities,
Treasury Bills and Bonds issued by Public Sector
Undertakings/ Corporates/ Banks like Floating Rate Bonds,
Zero Coupon Bonds
Commercial Papers,
Certificate of Deposits,
Corporate Debentures,
State Government loans, SLR and Non-SLR Bonds issued by
Financial Institutions,
Units of Mutual Funds and Securitized debt by banks,
financial institutions, corporate bodies, trusts and others.

CAPITAL MARKET
SEGMENT
NSE facilitates trading in
equities and retail trade in
convertible
non convertible debentures
and hybrids.
Equities
Equities Indices
Mutual Funds
Exchange Traded Funds
Initial Public Offerings

January 16 2015 NIFTY Chart

DERIVATIVES
Derivatives are financial instruments
whose value depend upon the value of
some underlying asset.
Derivatives helps in
price discovery of underlying asset
It is a technique of risk management.

Derivatives can be
Forwards
Futures
Options
swaps

CALL OPTIONS-Buyer has a right to buy securities on the

due date at a predetermined strike price or exercise price
A option buyer B- option seller
Exercise price = Rs 50 per share after
1 month
Option premium = Rs 5
For A : when Actual price < (strike price +
premium)
Loss will be option premium Rs 5
When Actual price = (strike price +
premium)
it is break even point
When Actual price >(strike price +
premium)
Net gain will be=
{Actual price- (strike price + premium)}
For B: When actual price < (strike price+
premium)

As
graph

Bs
graph

PUT OPTIONS-Buyer has a right to sell

securities on the due date at a predetermined
strike price or exercise price
Ps
P option buyer Q- option seller
Exercise price = Rs 50 per share after 1
month
Option premium = Rs 5
For P : when Actual price > (strike price premium)
Loss will be option premium Rs 5
When Actual price = (strike price premium)
it is break even point
When Actual price <(strike price
-premium)
Net gain will be=
{Actual price- (strike price - premium)}

graph

For Q: When actual price > (strike pricepremium)

Qs
graph

FUTURES AND
OPTIONS TRADING
In the Futures and Options segment,
trading in CNX Nifty Index,
CNX IT index,
Bank Nifty Index,
Nifty Midcap 50 index
Long term Options on CNX Nifty are also
available

CURRENCY DERIVATIVES
Acurrency future, also known asFX future, is a futures
contract to exchange one currency for another at a specified
date in the future at a price (exchange rate) that is fixed on the
purchase date.
On NSE the price of a future contract is in terms of INR per unit
of other currency e.g. US Dollars.
Currency future contracts allow investors to hedge against
foreign exchange risk.
Currency Derivatives are available on four currency pairs viz.
US Dollars (USD), Euro (EUR), Great Britain Pound (GBP) and
Japanese Yen (JPY). Currency options are currently available on
US Dollars.