answersLogoWhite

0

What is a derivatives future?

Updated: 9/19/2023
User Avatar

Wiki User

13y ago

Best Answer

future is a commitment to receive or deliver a specified quantity and quality of a commodity by a specified future date. A future can be used to insure a transaction price at a date prior to the actual exchange.

User Avatar

Wiki User

13y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is a derivatives future?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is derivatives in banking?

what is derivatives in banking


Can you have a Future on an Option on a Future?

When you're dealing in Over the Counter derivatives you can have anything you want. I can't imagine why you'd want a contract that obligates you to buy another futures contract on a date certain, though.


What is currency derivatives?

Currency Derivatives are Future and Options contracts which you can buy or sell specific quantity of a particular currency pair at a future date. You can use your Equity payment gateway to transfer funds for the purpose of trading in Currency segment. As per current regulation, Indian Residents, Corporates registered in India, Indian Financial Institutions and Banks can participate in this market.


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).


What is the formula for derivatives?

this site has info/formulas about derivatives and limits: http://www.scribd.com/doc/14243701/Calculus-Derivatives-Formula


What are the derivatives of 'est'?

The only derivatives of the verb 'est', which means '[he/she/it] is', are other forms of the infinitive 'esse', which means 'to be'. For example, 'esto' may be the second or the third person singular form in the future imperative tense. In terms of the second person, it translates as '[you] shall be'. In terms of the third, its translation is '[he/she/it] shall be'.


What is types of derivatives?

The common derivatives in the market are futures contracts, options and swaps. A futures contract is a contract between two or more parties to trade a certain asset at a specified date in the future at the price agreed on today. Swaps are contracts to exchange cash on or before a certain future date. Cash is exchanged based on the underlying value of commodities, stocks, exchange rates or other such assets Options give the owner the right but not the obligation to buy or sell an asset. The sale takes place at a certain price called the strike price. This price is specified when the parties enter into the contract. This contract will also specify a maturity date. There are five major classes of underlying assets. These are interest rate derivatives, foreign exchange derivatives, credit, equity and commodity derivatives.


What is deravaties?

Derivatives are financial instruments that normally peg their value to another financial instrument. For example, an option or a future is a derivative because it gets its value from a stock or bond.


What are derivatives for the latin word aquae?

Some derivatives are aqueous, aquaduct, aquifer.


What are derivatives and their uses?

derivatives are the functions required to find the turning point of curve


When was Swiss Derivatives Review created?

Swiss Derivatives Review was created in 1997.


What is the meaning of share derivetives?

Derivative means how to minimize the risk of shares in stock market and how to earn more money. There are two types of derivatives. 1. Future 2. Option