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Tagged: Derivatives
Derivatives are financial instruments that derive their value from either a stock of a company or any commodity or Gold etc…, based on the changes in their price values. Derivatives do not depend on the underlying asset. There are 2 types :
Exchange traded Derivatives : Trading happens through the Exchange. Eg: Futures and Options (only companies listed in the Exchange)
Over The Counter Derivatives : Trading happens through mutual agreement between traders. Eg: Private contracts, Securities etc…
derivative market is where trade is derive from the value of stock
Futures and Options are the derivative instruments.
Derivative Instruments are Futures and Options.
Futures and options.
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