Derivatives are those instruments of the financial market which derive their value from an underlying asset which can be indices, stocks, commodities, exchange rates, interest rates or currencies. Derivatives as financial instruments help the investors to make profit by betting on the future market value of the underlying asset.
The interesting fact here is that the stock value fluctuates as per the current market conditions. In the changing market scenario investors either make profits or incur losses. Derivatives come handy during this time. It acts as safety net and helps in making additional price by correctly guessing the prices of the assets in future. In India, the derivative market has gained significance after they were introduced in the year 2000.
For those who are new to the concept of derivatives, it may seem a little perplexing as how can an underlying asset be put in use for business. A derivative online course will help you understanding
The participants in the derivative market play an important role in determining the market situations. Based on their trading interests the participants of the derivative market can be divided into four broad categories.
Derivatives training online courses give a detailed understanding of the derivatives markets such as derivative instruments, options, forward and futures, equities, asset backed and fixed income securities. The volume of derivative trading in the Indian market has grown manifold and it is never too late to start your own portfolio and earn profits from the market of underlying asset.