The derivatives trading on the NSE commenced with S & P CNX Nifty Index futures on June. 12.2000. The trading in Index options commenced on June 4. 2001 and trading in options on individual securities commenced on July 2. 2001.…
Derivatives have probably been around for as long as people have been trading with one another. Forward contracting dates back at least to the 12th century, and may well have been around before then. Merchants entered into contracts with one…
HISTORY OF DERIVATIVES MARKET: Early forward contracts in the US., addressed merchants concerns about ensuring that there were buyers and sellers for commodities. However “credit risk” remained a serious problem. To deal with this problem, a group of Chicago business…
Inspite of the fear and criticism with which the derivatives markets are commonly looked at. these markets perform a number of economic functions. Princes in an organized derivatives market reflect the perfection of market participants about the future and lead…
Derivative contracts have several variants. The most common variants are forwards, futures, options and swaps. We take a brief look at various derivatives contracts that have come to be used. FORWARDS: A forward contract is a customized contract between two…
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…
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…
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…
Make Profit from Day trading Stocks Trading simply implies the practice of buying and selling financial instruments. It should be done on the same trading day. This is because all the positions are usually closed before closing of the market…
ELECTION 2009 INDIA CARNIVAL AND STOCK MARKET INDIA CARNIVAL: Election is like big carnival in India with entire population from all walks of life gets swayed by it. There are colors and flood of money flowing. Everything comes to stand still.…