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Derivative contracts are bought and sold by dealers who work for banks and other security houses. Some contracts are traded on exchanges while others are OTC Transactions.
In a large investment bank, the derivatives function is now a highly skilled affair. Marketing and sales staff speak to clients about what they want. Experts help to create solutions to those customer requirements using a combination of forwards, swaps and options. Any risk the bank assumes as a result of providing such tailor-made products is managed by the traders who run the banks derivatives books. In the meantime, risk managers keep an eye on the overall level of the risk the bank is running. Mathematicians, also known as "Quants" devise the tools required to price the new products created by the experts.
Initially large banks tended to operate solely as intermediaries in the derivatives market, matching the buyers and the sellers. Over time, however, they have assumed more and more risk themselves
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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 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 the difference between dealer and stock markets?
differance between stock market and dealer market?
What are the two major financial market-traded forms of financial derivatives?
Futures and options
Is dealer commercial paper money market or capital market?
Money Market
What are the Recent measures initiated by the government towards developing a derivatives market in India?
developing a derivatives market in india
What is the difference between commodity market and normal market?
Normal market ( Equity or Stock Market ) deals with trading of company shares , their and their index derivatives , mutual funds and bonds. Commodity market deals with the derivatives of physical commodities ( Metals , Edibles etc )
What is the definition of 'OTC Derivatives'?
OTC (Over-The-Counter) derivatives refers to trading done not through channels such as NYSE. This type of trade is often undertaken via a dealer network.
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 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 the difference between dealer and stock markets?
differance between stock market and dealer market?
Who buys derivatives?
The derivatives market serves the needs of several groups of users, including those parties who wish to hedge, those who wish to speculate, and arbitrageurs.
Who are the participants in a derivatives market?
There are four main types of participants in any Derivatives Market. They are: 1. Dealers 2. Hedgers 3. Speculators and 4. Arbitrageurs A point to note here is that, the same individuals and organizations may play different roles under different market circumstances
What are the two major financial market-traded forms of financial derivatives?
Futures and options
Is dealer commercial paper money market or capital market?
Money Market
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.
The original sale of securities by governments and corporations occurs in the what market?
dealer market
