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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.

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How derivatives work in a foreign exchange market?

In the foreign exchange (FX) market, derivatives are financial instruments whose value is derived from the underlying currency pairs. Common types of FX derivatives include forwards, futures, options, and swaps, which allow traders to hedge against currency risk or speculate on exchange rate movements. For example, a forward contract locks in a specific exchange rate for a future date, helping businesses manage exposure to fluctuating rates. Overall, derivatives enhance liquidity and provide flexibility for market participants in managing their foreign exchange risk.


When did derivatives trading start?

Derivatives can be traced as far back as 332 BC when a man known as Thales bought options on olive presses ahead of a olive harvest.


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 derivative trades?

Derivatives are financial instruments that derive their price and values from their underlying asset. Examples of derivatives are options and futures. Both options and futures derive their value from their underlying stocks. Trading derivatives means buying options or futures instead of the stocks itself mainly for leverage.


What are derivatives in economics?

Derivatives are securities whose value is derived from the some other time-varying quantity. Usually that other quantity is the price of some other asset such as bonds, stocks, currencies, or commodities. It could also be an index, or the temperature. Derivatives were created to support an insurance market against fluctuations. source:www.economics.about.com

Related Questions

How derivatives work in a foreign exchange market?

In the foreign exchange (FX) market, derivatives are financial instruments whose value is derived from the underlying currency pairs. Common types of FX derivatives include forwards, futures, options, and swaps, which allow traders to hedge against currency risk or speculate on exchange rate movements. For example, a forward contract locks in a specific exchange rate for a future date, helping businesses manage exposure to fluctuating rates. Overall, derivatives enhance liquidity and provide flexibility for market participants in managing their foreign exchange risk.


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).


What is the formula for derivatives?

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


Is nifty option American or European?

Nifty Options are American in nature. European styled options do exist in the Indian markets , but in the currency Derivatives OTC markets.


What services does IndiaInfoLine offer to users?

IndiaInfoLine offers broking services in cash, derivatives and currency segments. They offer their services online and offline. They have business locations in more than 500 cities in India.


Is Derivatives a risk transfer tool?

Yes, derivatives are considered a risk transfer tool as they allow parties to manage or hedge against various financial risks. By using instruments such as futures, options, and swaps, entities can transfer the risk of price fluctuations, interest rate changes, or currency movements to another party. This enables them to stabilize revenues and manage exposure to market volatility effectively. Overall, derivatives facilitate a more efficient allocation of risk in financial markets.


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.


Can derivatives be viewed as investment intruments?

Yes. Derivatives are instruments of investment for the knowledgeable financial people. Novice and intermediate investors should keep away from derivatives.


What do you learn in calculus?

In Calculus, you learn Limits, Derivatives, Anti-Derivatives and all their applications!