Category Archives: Futures & Options

Growth Of Derivatives

Over the last three decades, the derivatives market has seen a phenomenal growth. A large variety of derivative contracts have been launched at exchanges across the world. Some of the factors driving the growth of financial derivatives are: Increased volatility in asset prices in Financial Markets. Increased integration of national financial markets with the International markets. Marked improvement in communication facilities and sharp decline

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Derivatives Defined

Derivatives is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices

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Introduction To Derivatives

The emergence of the Market for Derivative products, most notably forwards, futures and options can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature the financial markets are marked by a very high degree of volatility. Through the use of derivative products it is possible to partially

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