fbpx

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 risks from those who are exposed to risk but have low risk appetite to participants with high risk appetite.

For example:
Hedgers want to give away the risk where as traders are willing to take risk. The hedgers are the people or institutions who want to safe guard their physical or paper asset by hedging through derivatives. The traders are one who take speculative trades in a particular direction.

Derivatives market helps shift of speculative trades from unorganized market to organized market. Risk management mechanism and surveillance of activities of various participants in organized space provide stability to the financial system.

We at Traders Hut intend to share the knowledge of financial world as ‘We believe sharing is caring

In our next educational series we would discuss on ‘Risk of Trading Derivatives

For more queries or information contact us on traderzhut@gmail.com

Please follow and like us:
play
5 SIMPLE STEPS TO BECOME A SUCCESSFUL DAY TRADER
Are you unable to make money consistently in day trading?
Here is the solution 5 –simple steps to become a successful Day Trader Learn Earn and Prosper – LEAP: A gateway towards your trading success.
Come join us The Day Trader Workshop and unearth 5 - simple steps Day trading secrets.
FREE WEBINAR by Raju Angadi Vishwanth, MS, CFTe.
Seats are limited, Register now!
angle-down