the purposes of this book is to explain how equity derivatives can be used in the management of equity portfolios. The goal of the first chapter is provide an overview of the role of equity derivatives and the equity derivative market. The chapter 2 will look at listed equity optins and futures. The book explains the basic provisions and investment characteristics. Over the counter (OTC) derivatives, which include OTC options and warrants, equity swaps, and equity-linked debt, are covered in chapter10. In the chapter 3 is about using listed options in equity portfolio management. Moreover, the book provides about the basics of option pricing, pricing stock index future, arbitrage trade with stock index futures, basis and spread trading with stock index future, headging, asset allocation, OTC equity derivatives, and pricing issues with OTC options index