Equity Derivatives are the financial instruments whose value is derived from the price of an underlying stock or index. These derivatives enable market participants to hedge their risk, speculate on future price movements and manage their portfolios more effectively. Equity derivatives in India are primarily traded on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). 

There are two types of Equity Derivatives traded in India:

1. Futures: Equity futures are standardized contracts to buy or sell a specific quantity of an underlying stock or index at a predetermined price on a future date. The Equity Futures Contract in India have monthly expiry dates and are cash as well as physically settled.


2. Options: Equity options on the other hand are more featured products traded on the exchange. The equity options give the holder the right to buy or sell a call or put option of specific quantity of an underlying stock or index of specific strike price. The options also have specific expiry date and are cash as well as physically settled.

There are many strategies to initiate trades in Future as well as Options. A combination of Futures and Options is also done for different strategies.