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cotton is very important for ready made garments sector in Bangladesh.

so to rise of cotton price will increase the cost for this sector and which will imply less export in world market so now its time for the government of Bangladesh to take the step to have a derivative market in Bangladesh.

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Q: Why derivative market is important for Bangladesh?
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Related questions

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 are the principal money market and capital market instrument available to the bank in Bangladesh?

What are the Capital Market Securities of Bangladesh


What type of economy does Bangladesh have?

market ecomomy


Is Bangladesh economy is market economy?

Yes


What is features of derivative market?

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


What is a market risk when entering into a derivative contract?

Market Risk. This is the potential financial loss due to adverse changes in the fair value of a derivative. Market risk encompasses legal risk, control risk, and accounting risk.


What type of economic system does Bangladesh have?

market economy


Effect of stock market in Bangladesh economy?

madersod


What is the effect after downfall of share market in Bangladesh?

butts


What type of economic syestem does Bangladesh have?

Market oriented


What do you think about the economic system of Bangladesh?

Market oriented


Why is derivatives important?

the simply meaning of derivative is a market which is helps to minimized the risk of loss. and the main objective if any business is to bring maximized profit to company so that's the reason to derivatives is important.