developing a derivatives market in india

Normal market ( Equity or Stock Market ) deals with trading of company shares , their and their index derivatives , mutual funds and bonds. Commodity market deals with the derivatives of physical commodities ( Metals , Edibles etc )

the derivative market means the the price of particular product in the market is fluctuating time by time.

Derivatives market is the market where derivative products are traded. It has a great demand all over the world with the US Derivatives market being the largest in the world. The prices of derivative products are determined based on the price movement of the underlying asset. Derivatives are extremely risky and are not for the novice investors. Some of the derivative products that are available in the derivatives market are:

a. Futures

b. Forwards

c. Options

d. Swaps

e. Swap Options

f. Basket Trades

g. etc

The derivatives market serves the needs of several groups of users, including those parties who wish to hedge, those who wish to speculate, and arbitrageurs.