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Yes. Derivatives are instruments of investment for the knowledgeable financial people. Novice and intermediate investors should keep away from derivatives.
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Where are commodity derivatives traded?
Modern commodity derivatives trading is more appeal to the people outside of the commodities industry. This type of investment has been started since 1848.
What are the roles of investment banks in the growth of an economy?
Through innovations of financial intruments and advisory to clients like corporate firms and goverment, which are main vehicles in growth of an economy, investment banks assist these clients to raise funds.
What is a structured product as it relates to finance?
A structured product is also know as a market linked investment, is generally a pre-package investment strategy based on derivatives such as a single security, as it relates to finance.
What intruments for holding another intruments?
Instrument for holding another instrument is called " stand ".
How many kinds of investments are existing?
There are different types of investments available for a quick investment option like cash investment, debt securities, Stocks trading, mutual funds, derivatives, commodities, and real estate. One need to understand the importance of investment and the risks on returns depending upon the choice of investment plans. Short term and long term investment choice makes a good difference to meet one's requirement on investment.
What intruments start with z?
Xylophone
When they were invented?
what intruments were used in trinidad
Which intruments has the highest pitch?
Violin.
What intruments do soccer players work with?
Their feet.
What is musical intruments starts with an i?
· Irish Flute
What is derivatives in banking?
what is derivatives in banking
What is derivatives in terms of finance..?
In finance, a derivative is a financial instrument (or, more simply, an agreement between two parties) that has a value, based on the expected future price movements of the asset to which it is linked-called the underlying asset-such as a share or a currency. There are many kinds of derivatives, with the most common being swaps, futures, and options. Derivatives are a form of alternative investment. A derivative is not a stand-alone asset, since it has no value of its own. However, more common types of derivatives have been traded on markets before their expiration date as if they were assets. Among the oldest of these are rice futures, which have been traded on the Dojima Rice Exchange since the eighteenth century. Derivatives are usually broadly categorized by: * the relationship between the underlying asset and the derivative (e.g., forward, option, swap); * the type of underlying asset (e.g., equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives or credit derivatives); * the market in which they trade (e.g., exchange-traded or over-the-counter); * their pay-off profile. Another arbitrary distinction is between: * vanilla derivatives (simple and more common); and * exotic derivatives (more complicated and specialized).
