Introduction To Derivatives In Capital Market
Introduction
To Derivatives In Capital Market
· wHAT IS dERIVATIVEs?
The term ‘Derivatives’
stands for a contract whose price is derived from or is dependent upon an
underlying asset. The underlying asset could be a financial asset such as
currency, stock and market index, an interest bearing security or a physical
commodity.
·
WHAT IS
PREMIUM?
a.
Premium is always Payed or Receive.
b.
Premium paid by buyer and received by
seller.
c.
Premium is transferred from one party to
another party it is known as premium exchange or premium shift. s
·
TYPES OF
DERIVATIVE CONTRACTS
Derivatives comprise two basic contracts
namely Future or Options .
A futures contract is an agreement
between two parties to buy or sell an asset at a certain time in future at a
certain price.
These are basically exchange traded,
standardized contracts and the Contract is 100% safe with ID and order number
it is like a legal contract.
·
CAN WE EARN MONEY
THROUGH DERIVATIVE TRADING?
·
PORTFOLIO CLIENTS
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