What is Inflation?

Inflation is an environment in an economy where prices of goods and services are increasing subsequently. The purchasing power of the currency is reducing. During the inflationary environment the cost living for the public increases. To keep the inflation on check...

Risk of Trading Derivatives

Market Participants (traders) must understand that derivatives are leveraged instruments, have risks like counterparty risk (default by counterparty), price risk (loss on position because of price move), liquidity risk (inability to exit from a position), legal or...

Monetary Policy & Significance

A macroeconomic policy established by central bank is defined as Monetary Policy. To manage the macroeconomic objectives such as inflation, growth, consumption and liquidity government of the country uses interest rates and management of money supply and demand side...

Importance of Derivatives

The importance of Derivatives Markets include following specific functions like other segments of financial market: Derivatives market assists in enhancing the price discovery based on actual valuations and expectations. Derivatives market helps in transfer of various...