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A derivative market is an investment market geared towards securities that get their value from an underlying security. On the other hand A stock marketis a place where buyers and sellers trade company stock for a set price. In the financial world, "stock" simply means a supply of money a company has raised from individuals or other organizations.

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3y ago

The option is part of the financial market. There are two types of options call options and put options. Call options are the right to own security at a certain price. The put option is the right to sell for security at a certain price more

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Q: What a different of derivative market and stock market?
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What is the difference between cash market and derivative market?

Cash market is setup so you may buy a share of a company for a investment purpose. Cash market allows you to become part owner of the company. Derivative marketing people trade hedging of their position in the Cash market, trade shares of stock.


What is a composite stock index?

A Stock Market index option is a kind of option. In fact, it is a kind of financial derivative. It is often tied to either a narrow-based index or a broad-based index.


Which stock exchange is FONSE?

FONSE is derivative market for NSE. under this exchange future and options stocks can buy/sold.


What is the difference between derivative and stock?

"Equity" means ownership. Anyone who holds one share of XYZ company owns a portion of the company. The word 'Derivative' in Financial terms is similar to the word Derivative in Mathematics. In Maths, a Derivative refers to a value or a variable that has been derived from another variable. Similarly a Financial Derivative is something that is derived out of the market of some other market product. Hence, the Derivatives market cannot stand alone. It has to depend on a commodity or an asset from which it is derived. The price of a derivative instrument is dependent on the value of the asset from which it is derived. The underlying asset can be anything like stocks, commodities, stock indices, currencies, interest rates etc.


About derivatives market you mean the exacltly definition of derivative market?

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


What is the risk level of stock-futures investments?

The risk level of stock-futures investments is generally high. Stock futures are derivative contracts that derive their value from an underlying stock. As such, they are subject to market volatility, price fluctuations, and other risk factors associated with the stock market. Investors should carefully assess their risk tolerance and make informed decisions before investing in stock futures.


Where can a person read about the stock market failure?

A person can read about the stock market failure in several different places. A person can read history books about the stock market failure, or they can read blogs for first-hand accounts of the event.


What is stock market all about?

hey varun stock market is all about trading different scripts in it ....if you want to learn more about stock market and its trading then you should log on to this site called www.utvi.com....it will really help you gain knowledge about it...


What do you mean by derivative?

A derivative can be defined as something which derives its value from an underlying product being a stock, currency, commodity or anything that carries a market price.The market price of a product is subject to fluctuations due to various factors effecting its demand & supply thereby associating itself to various risk factors.SO, derivative is a by-product of the core product which can be used to hedge, speculate & also undertake arbitrage activities.


What is stock selling?

A stock market is used for the trading of shares of different company stocks. And the Stock Selling means buy stocks form different share holders companies.


Where can one find stock market newsletters?

One can find stock market newsletters from many different resources. Some examples of online websites with these newsletters include StreetSmartReport and Market Watch.


Where is the largest exchange in the Canadian stock market located?

The Canadian Stock Exchange is separated into different groups. TMX Group is one of the bigger stock exchanges in Canada. Canadian National Stock Exchange is another.