0
What else can I help you with?
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
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.
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 do you mean by derivatives?
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.
Questions related to the stock market?
The knowledge of stock market is a vast field and it needs to be kept updated with the passage of time. A simple definition of stock market is that "A stock market is a public market for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately".
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
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.
Uses of derivative in daily life?
Most people rarely sit down and think that they are calculating derivatives, however derivatives are used in almost every process that we do. Simple driving uses derivatives to calculate speed. Computers use derivatives for a lot of signal processing algorithms. The stock market uses derivatives to see if a stock how stocks are changing. Anything that relates two values at different times most likely uses a derivative process.
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
What is financial market instrument?
Another term for financial market instrument is a derivative. It means it derives its value from something else. i.e. stock options derive there value from stocks. If you are investing avoid them. There is a significant amount of hidden leverage in derivatives.
What are the Recent measures initiated by the government towards developing a derivatives market in India?
developing a derivatives market in india
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 purpose of a derivative product?
The purpose of a derivative product is to provide a mechanism for managing risk or speculation in financial markets. Derivatives, such as options and futures, allow investors to hedge against price fluctuations in underlying assets or to leverage their positions for potential gains. They can also facilitate price discovery and enhance liquidity in the market. Ultimately, derivatives serve as tools for both risk management and investment strategies.
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.
Who regulates derivative market?
The derivatives market is primarily regulated by government agencies in various countries. In the United States, the Commodity Futures Trading Commission (CFTC) oversees futures and options markets, while the Securities and Exchange Commission (SEC) regulates securities-based derivatives. Other countries have their own regulatory bodies, such as the Financial Conduct Authority (FCA) in the UK, which also monitor and enforce rules to ensure market integrity and protect investors. Additionally, self-regulatory organizations (SROs) play a role in establishing and enforcing standards within the derivatives markets.
What is financial instrument?
Another term for financial market instrument is a derivative. It means it derives its value from something else. i.e. stock options derive there value from stocks. If you are investing avoid them. There is a significant amount of hidden leverage in derivatives.
What do you mean by derivatives?
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.
