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What do equity derivatives refer to?
Equity derivatives refer to the options and futures one has when trading or selling off different equitable assets. Equity options are the most common derivatives that there are.
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).
Identify the major types of securities traded in the securities markets?
shares ,derivatives
What are the two major financial market-traded forms of financial derivatives?
Futures and options
What is the use of derivatives in business?
Derivatives as the name suggests derive its value from an underlying asset. The main purpose of derivatives is to hedge the risk. Hedging means it helps to reduce the risk but it does not necessarily eliminate the risk. However it needs special precaution to take when one is going to use the derivatives otherwise it will be like a double edged sword. Business like banks and corporate use derivatives to hedge the fluctuations in the market, be it the interest rate or the currency. Fluctuations in interest rates are the ones where banks are interested to use interest rate future(used as derivatives),plain vanilla interest rate swap etc. A company like CocaCola might be interested to hedge its risk of not getting profit if the season for its coke does not pick up due to bad weather ahead. One can not predict the weather so in this case derivatives like weather derivatives are used to hedge the risk. However as a market participant one can use the derivatives for the purpose of trading also. Trading on options or futures where shares or indexes can be an underlying asset. Traders also try to guard against the falling stock market. There are different inputs required for them which are mostly mathematical and statistical. Those instruments has to be priced using some methods which are always complex. Different complex strategies like stradle and strangle etc are used in case options. It is a kind of insurance against the probable losses in future. But one has to do it cautiously otherwise there will be the opposite impact.
What is derivatives in banking?
what is derivatives in banking
What are nucleoside derivatives?
Nucleoside derivatives are molecules derived from nucleosides, which are composed of a nitrogenous base (such as adenine or cytosine) linked to a sugar (such as ribose or deoxyribose). These derivatives can include modified bases or sugars, as well as phosphorylated forms like nucleotides. They are important in biological processes like DNA and RNA synthesis.
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 fuel did the Victorians use?
Coal, wood and their derivatives were the main sources of fuel. Oil was increasingly becoming more important.
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.
Which US state sounds most important?
See the following link for derivative meaning of the US state names:State name derivatives
What do you learn in calculus?
In Calculus, you learn Limits, Derivatives, Anti-Derivatives and all their applications!
What is spatial derivatives?
They are derivatives with respect to measures in space: normally length, area or volume.
What are some derivatives for intrat?
Some derivatives for "intrat" could include "intra-" and "intr."
