World Economy

Sep 24, 2006

derivatives

Derivaties are the lovely part stockmarket. But every body is fails to earn money in future and option reseason behind is that no one love hedging and if we go in deep derivatives emerged as a hedging its best way to reduse the risk of ur money if u fallow hedging process , but all want this game on one sided . Mostly players of f$o belives in bull run and they plus postions in the market , and when market carshed they sell their postions in jiffy. I think better to know all of those pople bear is more powerful than bull. i donot mean to say donot plus postions and alwayes short my main pont is that play the game with both aspectes .
Derivative---Derivative is a product/contract which does not have any value on its own i.e. it derives its value from some underlying assets.
Derivative divided into two parts forward contract and future contrcts.
forword contract----A forward contract is one to one bi-partite contract, to be performed in the future, at the terms decided today.
future contract--- Future contracts are organised/ standardised contracts, which are traded on the exchanges

by erectusplus at 6:26 AM |