BNB PAT 6 months course outline

PAT: Fast Track CoursePAT: Fast Track Course

PROFESSIONAL ARBITRAGUE TRADER

6 Months Comprehensive – Career Oriented Course

Master the Stock Market Trading the Expert Way

BatchAugust 2010

BULLS n BEARS SCHOOLH – 13/8, Malviya Nagar, New Delhi – 110 017

‘The Single-best resource for understanding the Stock Market Trading’

Programme Objective

“To create professional arbitrague traders by giving strong fundamental knowledge and the most modern job-oriented practical training.”

After completing this course you will be able to:•Understand the dynamics of the stock markets.•Develop critical trading approaches, which in-turn will make you a proficient trader.•Have hands-on training on NSE/BSE/Futures & Options markets.•Understand the complete back-office operations, risk management, business development and client relationship management for better execution of the trading job.•Develop your personality and business communication skills.•Be a NCFM certified financial professional. •Explore career opportunities as Jobber/Arbitrageur/Dealer – Cash and F&O, Terminal Operator, Sub-broker, Franchisee, Relationship Manager, Business Ambassador, etc.

Professional Arbitrague Trader

OverviewThis course is designed to meet the growing demand for equity traders and entrepreneurs in the industry. The teaching aids include several practical and simulated situations. The participants will get an excellent exposure of the stock market through analytical software, company database – Capital line and hands-on training on mock simulated software on NSE/BSE/F&O.

No one enters the stock market in the hopes that they may actually lose money on their investments. Sadly, most do. Avoid expensive trading blunders with this hands-on course designed to make proficient traders and investment advisors. Developed by expert market practitioners, the invaluable lessons learned in this course save our students’ and their clients’ thousands of rupees in trading and investment mistakes.

The themes of this course are:•Structure of stock markets and how they function.•Practical hands-on practice and demonstration of simulated trading environment and analyzing tools.•Key features of equity derivatives including examples and calculations.•Application of communication and behavioral techniques in practice.•Design and managing of trading platform.

Course Schedule – LEVEL 1

3 sessions a day for 3 monthsIn total over 130 hrs of Job – Oriented Training (Theory, Practical & Evaluations

inclusive) supported by Study Materials, e-Learning Support and Training Aids like LCD Projectors, Mock simulated trading, Capital line database and other relevant

Software etc.

PRACTICAL

Timing

08:30 am

to

10:00 am

THEORY

Timing

10:00 am

to

11:00 am

LIVE MARKET

Timing

11:30 am

to

15:30 pm

REGULAR OFFLINE/ONLINE ASSESSMENT THROUGHOUT

NCFM PREPARATORY

To be Scheduled on Saturdays for 4 hrs.

Course Schedule – LEVEL 2

2 sessions a day for 3 monthsIn total over 36 hrs of Concept Training (Theory, Practical & Evaluations inclusive)

supported by Study Materials, e-Learning Support and Training Aids like LCD Projectors, Mock simulated trading, Capital line database and other relevant

Software etc. Plus 540 hrs of On-the-Job Training supported by Job Aids.

ON-THE-J0B

Timing 8:30 am to 15:30 pm

On-the-Job Training

With BnB / ADROIT / Any other firm

At a minimum stipend plus Incentives.

REGULAR OFFLINE/ONLINE ASSESSMENT THROUGHOUT

CONCEPT

Timing 16:00 am to 17:00 pm

3 Days a Week

Monday, Wednesday, Friday

Learning Outcome Welcome To The World of Securities

Orientation

•Introduction to the Course

•Rules and Regulations

•Expectations etc.

Introducing the Indian Securities Markets and it’s overview

PRACTICAL (Sessions 1 – 5) – T.T. 90 min

•Meaning•Nature•Products•Participants•Functions•Growth & Statistics•Legal Framework

•Functions

• Growth & Statistics

•Legal Framework

Introducing all possible products in the markets

•Debt

• Equity

• Hybrid

• Mutual Fund

• Fixed Deposits

•Insurance

•The Equity Advantage

Welcome to the Stock Markets

PRACTICAL (Sessions 6 – 8) – T.T. 90 min (Session 9 – 10) T.T. 45 min & Enntee Tutor 45 min

Introducing all possible products in the markets

•Debt

• Equity

• Hybrid

• Mutual Fund

• Fixed Deposits

•Insurance

•The Equity Advantage

The World of Stocks

•Electronic order-driven market.

•Why the stock market is a good investment

•Why the stock market gets out of whack with reality

•Recommended ways to invest in the stock market.

•Economic significance of index movement•Index Construction•Types of index•Desirable attributes of an Index•Impact Cost – A measure of liquidity•Corporate actions and it’s effect on index securities•Hedging Effectiveness

Market Index

Learning Outcome

How to use the Trading System

PRACTICAL (Sessions 11 – 15) T.T. 45 min & Enntee Tutor 45 min

Depositories – The Technology

Advantage

•How does the demat system work?

•Organization Structure of Depository

•Services offered by depository

Trading Mechanism

•Different market orders types – their order books & Order types

•Different market phases – logging on & off during these phases

•Inquiry Screen

•Market Watch

• Security Descriptor

•Market by Price

•Previous Trades

•Outstanding orders

•Activity Log

•Order Status

•Market Movement

•Market Inquiry

•Security List

•Multiple index Broadcast & graph

•Online Backup

•Basket trading

Trading Functions

Learning Outcome

Clearing and Settlement

PRACTICAL (Sessions 16 – 18) T.T. 45 min & Enntee Tutor 45 min

(Session 19 – 20) T.T. 15 min; Enntee Tutor 30 min; BesTrade 30 min & Integers 15 min

•Market Watch

• Security Descriptor

•Market by Price

•Previous Trades

•Outstanding orders

•Activity Log

•Order Status

•Market Movement

•Market Inquiry

•Security List

•Multiple index Broadcast & graph

•Online Backup

•Basket trading

Trading Functions

•Transaction cycle

•Settlement

process, agencies

& cycle

•Securities &

Funds settlement

•Shortages

handling

•Dematerialization

& electronic

transfer of

securities

•Investor

protection fund

•Clearing software

Clearing & Settlement System

Learning Outcome

Risk Management

PRACTICAL (Session 21 – 25) T.T. 15 min; Enntee Tutor 30 min; BesTrade 30 min & Integers 15 min

Risk Containment Measures

•Capital adequacy requirements; Margins; Settlement guarantee

•Margin Trading: Requirements; Cost of margin trading;

Evolution of Risk Mgmt

•Different types of Problems – Funds/Working Capital bottleneck Trading losses on A/C

•Automated trading environment

•Need for continuous monitoring

Structured system of daily margins

Focus on mark to market; Gross & net exposure; Concentration margins; Collateral Concerns & Capital adequacy by Way of exposure limits

Real Time online monitoring & automatic disablement; Portfolio approach to exposure & Problem of common client positions across exchanges

Evolution of Risk Containment

Learning Outcome

Guest Lecture

Reflection of an experton risk management

Trading Approaches

All About Liquidity

•Key risk areas – Credit Risk & Operational Risk

•NSCCL – Provides efficient C&S services & Operates a tight risk containment system

•Counter Party risk guarantee

Getting a Grip on Trading

•Order arrival

•Overview of trading terminal

•Getting started with trading terminal

• Using trading simulation on an academic floor.

Critical Trading Approaches

•Developing market outlook

•Pricing your order

•Handling a large order

•Giving clients greater choice in trade execution;

•Developing the bigger picture

Learning Outcome

PRACTICAL (Session 26 – 30) T.T. 15 min; Enntee Tutor 30 min; BesTrade 30 min & Integers 15 min

Back Office Operations

Need to focus on Back Office

•Admission of client

•Legal documentation

•Credit limits

•Portfolio reconciliation with exchange demand

• Discrepancy resolution

Membership

•Members

•Brokers

•Sub-brokers

Guest Lecture

Reflectionof a experttraderfrom Industry

Learning Outcome

PRACTICAL (Session 31 – 35) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 25 min & NSE/F&O Mock Trading (ODIN) 25 min

Company & Capital Formation

Company & Capital Formation

•Equity, Debt, IPO, Public issue, Rights & Bonus

•Capital Structure and Cost of Capital

•Concept of Dividends

•Capital Budgeting

Time Value of Money

•Future Value of Single Cash Flow

• Future Value of an Annuity

•Present Value of a Single Cash Flow

• Present Value of an Annuity

Accounting Basics

• Introduction to Accounting

•Accounting in Stock markets

•Taxation

•Capital accounting

Learning Outcome

PRACTICAL (Session 36 – 40) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 15 min & NSE/F&O Mock Trading (ODIN) 15 min &

Shilpi 20 Min

PRACTICAL (Session 41 – 45) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 15 min & NSE/F&O Mock Trading (ODIN) 15 min &

Shilpi 20 Min

Important Concepts On Basic Economy

Stock Market on a Macro Level•Reflection of economic growth (GDP)

•Impact of changes in Bank interest rate & inflation

•Rupee-Dollar parity

•Foreign exchange reserves

•Effect of crude oil prices on the market

•Impact of international markets – FII inflows

•The China & US factor

Economic Indicators and their Impact on the Stock Market

•Economic Indicators – lead, lag & coincidental

•Economic Indicators & their relationship to the economy

•Law of demand & supply

•Assessing the general economic situation both within the country & internationally

•RBI’s monetary & credit policies

Learning Outcome

•Industry Analysis

•Company Analysis

•Financial Statement Analysis

•Valuation Ratios

•Understanding the Financial

pages

•Building a portfolio

How to Pick your Stocks

PRACTICAL (Session 46 –50) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 10 min; NSE/F&O Mock Trading (ODIN) 10 min;

Shilpi 10 min & Jobbing/Arbitrage 20 min

Stock Picking & Timing the Buy & Sell

•Dow Theory – price indications to buy & sell

•On Balance Theory – Volume indications to buy & Sell

•Moving Average – Resistance & Support

•RSI – Overbought & Oversold markets

•Working on momentum & Stop Loss

When to Buy & When to Sell

Learning Outcome

NCFM – Preparatory

MOCK TEST

NCFM Capital Market (Dealers) Module

Preparation for Capital Market (Dealers) Module

Chapter 1: Trading

Chapter 2: Clearing & Settlement


Chapter 5: An overview of the Indian Securities Market

Chapter 6: Fundamental Valuation Concepts


Chapter 3: Trading Membership

Chapter 4: Legal Framework

PRACTICAL (Session 51 – 55) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 10 min; NSE/F&O Mock Trading (ODIN) 10 min;

Shilpi 10 Min & Jobbing/Arbitrage 20 min

Learning Outcome

Welcome to The World of DerivativesIntroducing

the Derivatives Market

•Why have derivatives

•Defining derivatives

•Types of derivatives

•Derivatives – product, participants and functions

Commodity Derivatives

•Difference between commodity and financial derivatives

•Evolution of the commodity market in India & the global commodities derivative exchanges

•The NCDEX & MCX platform

Opportunity in Commodity Markets

•Migration from Equity to Futures & Futures to Commodity Futures

•Growth & Future of commodity market

• Basics of different commodity traded

Personality Development

•Communication Skills

•Confidence Building




PRACTICAL (Session 56 – 60) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 10 min; NSE/F&O Mock Trading (ODIN) 10 min

Shilpi 10 min & Greek 20 min

Learning Outcome

Introducing the Futures Market

Futures and Stock Index

•Understanding Index futures

• Margins & Settlements

•How to read the futures data sheet; Selecting the right Index

Pricing of Futures

•Futures prices models – Overview

•Cost of carry model for perfect & imperfect markets

•Futures payoffs;

•Trading Strategies – Hedging, Speculating and Arbitrage







PRACTICAL (Session 61 – 65) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 10 min; NSE/F&O Mock Trading (ODIN) 10 min,


Application of Futures

Learning Outcome

Pricing of Options

•Options prices models – Overview;

•Review of options pricing factors

•Black & Scholes Model

What are Options

•Call option

•Put option

•Option styles; Option concepts & terminologies

• Advantages of option trading

Introducing the Options Market

Application of Options

•Options payoffs;

•Trading Strategies – Bull market strategies, Bear market strategies, Volatile market strategies, Stable market strategies







PRACTICAL (Session 66 – 70) T.T. 10 min; Enntee Tutor 10 min; BesTrade 10 min; Integers 10 min; NSE/BSE/F&O Mock Trading (NEAT/BOLT) 10 min; NSE/F&O Mock Trading (ODIN) 10 min,


Learning Outcome


•Chapter 1: Introduction to derivatives

•Chapter 2: Market Index

•Chapter 3: Introduction to futures and options

•Chapter 4: Application of futures and options

•Chapter 5: Trading

•Chapter 6: Clearing and settlement

•Chapter 7: Regulatory Framework

MOCK TEST

NCFM Derivatives Market (Dealers) Module

GUEST LECTURE

Reflections of an expert Trader on F&O

Preparation for Derivatives Market (Dealers) Module


Shilpi 10 Min & Greek 20 Min

Learning Outcome

The Path to Trading Success:Relationship Skills

•Opening a Call•Opening Challenges•Listening•Probing•Supporting•Resolving Client Concerns•Closing a Call•Self - management

•The four stages of sales call•Preliminaries – Opening the call•Obtaining commitment – Closing the Sale •Client needs in the making of sale•Giving benefits in making sale•Preventing objections

Telephonic Selling Skills

Sales Behavior & SuccessPersonality

Development







Greek 10 min; Shilpi 10 min & Telephonic Calling 10 min

Learning Outcome

The Invisible Hands – SPIN® Selling Skills

•Situation Questions•Problem Questions•Implication Questions•Need Pay-off Question•Difference between questions & success•The SPIN ® model•How to use the SPIN ® questions•Selling new investment ideas

•The golden rules for learning skills• A summary of the call stages•A strategy for learning the SPIN ® behaviors •A final word

The SPIN® Strategy Turning Theory into Practice

Placement Assistance

•Resume writing

•Interview Skills

•Mock interview session


Greek 10 min; Shilpi 10 min & Telephonic Calling 10 min. OPENING OF 5 NEW TRADING ACCOUNTS

Learning Outcome

Doing Business in the Community

•Introduction, Scope and Career pursuit of Business development•Choosing, acquiring & managing your business partners•Managing the functions & Interrelationships•Other aspects of business development

Business Development

Entrepreneurship

•How to become a member of an exchange•Setting up the IT system•Hiring quality manpower•Back office set up•Getting familiar with the laws governing exchange

•Easing in – A quick tour of e-trading portals

•Finding investment ideas – List of picks, searches & Screens•Doing your homework – Checking facts•The bottom line – Managing your portfolio online

E-Trading – Where the street meets the Web

Learning Outcome


Greek 10 min; Shilpi 10 min & Telephonic Calling 10 min. OPENING OF 5 NEW TRADING ACCOUNTS


•Chapter 1: Introduction to Forex and Forex Derivatives

•Chapter 2: Introduction to Currency Futures

•Chapter 3: NSE’s Currency Derivatives Segment

•Chapter 4: Trading

•Chapter 5: Clearing and settlement

•Chapter 6: Regulatory Framework

MOCK TEST

FEDAI – NSE Currency Futures (Basic) Module

GUEST LECTURE

Reflections of an expert Trader on Currency & Interest Rate Futures

Preparation for FEDAI – NSE Currency Futures (Basic) Module


Shilpi 10 Min & Greek 20 Min

Learning Outcome

On-the-Job Specialization:Jobbing & Arbitrage

•Defining Arbitrage with examples•Arbitrage and competitive advantage•Arbitrageurs versus Investors•Arbitrageurs versus Jobbers•Arbitrageurs versus Hedgers•Arbitrageurs versus Speculators•Types of Arbitrage - Risk less arbitrage, Convertible hedge, Covered arbitrage, Parallel importing, Purchasing power parity, Conversion arbitrage, Convertible arbitrage, Index

Key Issues in Arbitrage

•Cash Market versus Cash Market

•Cash Market versus Futures Market•Futures Market versus Futures Market•Index Arbitrage

Arbitrage in Different Markets

Learning Outcome

ON-THE-JOB (Timing 08:30 am to 15:30 pm)

•Selecting the scrip for arbitrage, Parameters for selecting the scrip•Watching and calculating the difference between two markets•What is position, Different types of position - Open position, Hedge position•How to make position?

On-the-Job Specialization:Jobbing & ArbitrageLearning Outcome

ON-THE-JOB (Timing 08:30 am to 15:30 pm)

•Try to Hit •Hit to Hit •Hit to Try

•Enter and Exit from the Market•Fund and Non-fund based arbitrage•Different types of charges & margin requirements in Cash & FO markets•Compliances and Norms of Exchanges for trading

Different Styles to Trade in Market

Risk in ArbitrageUnderstanding different types of market and working in them

•Opening Market

•Dull Market

•Rally Market

•Volatile Market

•Closing Market

Team Work

•Importance of team coordination

•Importance of voice and body language

•Role and Responsibilities of team members - Terminal operator, Supporter and Team leader

AUDIENCE: Pass in 10+2, Graduates or Postgraduates in any discipline with or without a basic understanding of the stock market. Sub-brokers and Traders.

LENGTH: Level – I for 3 months, over 130 hrs of Classroom Training and Job-Oriented-Skill Training. Level – II (Specialization) for 3 months. Over 36 hrs of Concept Learning plus 540 hrs of On-the-Job Training.

FORMAT: Active involvement through small-group exercises, real-life examples from home and work, games, case studies, role plays and practical skill applications along with theory and e-learning support by using Capital Line Database, Hands-on training on simulated software on NSE/BSE/F&O markets.

MATERIALS: Facilitators guide, printed study materials, e-learning support, audio and video aids, participants worksheets, Measurement tools as spreadsheets and simulated software for job oriented skill imparting aids.

INSTRUCTION: Consortium of investment professionals from within and outside industry from across the country.

CERTIFICATION: Participants will be provided an industry accredited “Professional Arbitrague Trader” certificate on completing the course with a minimum of 50% score. Plus Appreciation Certificates for Quality Projects and Assignment done during on-the-job training.

PROGRAM Specifications

BNB PAT 6 months course outline

Education

trading job

live market timing

practical timing

expert market practitioners

mock simulated trading

handson course

trading platform

structure of stock markets