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The derivatives are the financial contract between two parties which don’t have their own value instead their value is derived from the underlying assets. The underlying assets could be stocks, commodities, currency or indices of the stock market.
The option contract is the contract between two parties which provide the rights not obligation to buy or sell the underlying securities/ assets on or before a future specified date at a predetermined price. Moreover, the options contract can be of two types: Call Option and Put Option.
In this article, we will discuss what are the call and Put Option and the difference between call and put option.
The futures and forward contract are types of derivative instruments, mean their value is derived from underlying assets. Although both futures and forward contract is similar in most context, yet there are many differences if we study these contracts conceptually.
In this article, we will focus on the difference between futures and forward contract in brief.
The futures and options are the derivative instruments utilised by the investors for the purpose of hedging and speculation. Both futures and options are publicly traded in the stock exchange to hedge the risk of loss due to the price movement of stocks and sometimes to make profits from such fluctuations of the stock market.
If you are new to the stock market or a management student or curious to learn components of the financial market, you might have heard the term derivatives. In this article, I will explain to you about derivatives in simple words with examples. You would be able to learn the following terms by the … Read more
