⚡ Chapter 6: Leverage and Derivatives

🎯 In this chapter

MTF, futures, options and why most traders lose.

Units in this chapter

1. Leverage and Margin - Understand how leverage magnifies gains and losses, what a margin call is, and how auto square-off works.
2. MTF (Margin Trading Facility) - Understand how Margin Trading Facility works, its interest cost, pledging shares, and worked gain and loss examples.
3. Futures - Understand futures contracts, lot size, expiry, mark-to-market settlement, and hedging vs speculation.
4. Options - Understand call and put options, premium, strike price, time value, and the asymmetric risk between buyers and sellers.
5. Why Most Retail Traders Lose - What SEBI studies show about retail derivative trader losses, the role of costs and psychology, recent rule changes, and safer alternatives.

📖 How to read

Go in order. Every new term is explained the first time it appears, and each unit ends with a keywords table.