Risk of Trading Derivatives

by | Jun 23, 2018 | Education, Futures

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...

Importance of Derivatives

by | Jun 20, 2018 | Education, Futures

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...

Types of Derivatives markets

by | Jun 19, 2018 | Education, Futures

There are wide range of derivatives products available in this modern environment. The two key types of Derivatives Markets include: Over the Counter (OTC) Over The Counter is a market place collective sum of brokers, institutions, dealers do buying and/or selling the...

Introduction to Derivatives

by | Jun 18, 2018 | Education, Futures

Derivatives is a contract or a product whose value is derived from value of some other asset known as underlying. Derivatives are based on wide variety of underlying assets. Derivatives are derived from the underlying instrument such as paper assets – Shares or...