Introduction of the derivatives was anticipated by the market players since long. Contribution of the derivatives is going to be defining to the development of the capital market in India, at a time, when benefit and convenience continues to be the most favorable arguments in favor of the derivatives. How far these complicated products would be understood and accepted by the common investor is the question that remains.

Stock market trading since time immemorial has been a simple buy and sell mechanism. It is perceived that it is gambling and is only for a not so sophisticated trader. But it is not so. Stock trading is one of the toughest professions I have known, where you are pitted against the smartest brains and these brains don't necessarily come only in a tie and suit. Speculation can be a profession and a profitable one at that provided we choose to apply and make it one.

Derivatives used to be a ghost word at one point of time, where the traditional investors were suspicious of touching and dealing in an intangible product. For example a simple and a traditional old economy stock like ACC could be bought and could be sold in cash market. But how could a traditional trader buy a derivative of the stock and with a time limit for a settlement. To add to his worry he has now other options too on ACC; he could buy or sell a current month contract, buy or sell a near month contract or buy or sell a far month contract. Wait; it is not over as yet, he could also buy a call on the stock or even sell a call on it.

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