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Dear All,<br>This presentation focus on all the important aspect of derivatives trading. If someone is interested in derivative trading and want to enter into the world then this presentation will help to know derivative trading.<br>Before starting derivative trading what to do ? <br>the persons who involve in it?<br>why should you try derivative trading?<br>various types of the derivative trading . That's all summarized in this presentation.
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The derivatives market or trading is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets Derivatives are financial contracts whose value is linked to the value of an underlying asset. They are complex financial instruments that are used for various purposes, including hedging and getting access to additional assets or markets Originally, derivatives were used to ensure balanced exchange rates for goods traded internationally. With the differing values of national currencies, international traders needed a system to account for differences. Introduction
The market is divided into two parts OTC trading • OTC market manages equities, shares and derivatives. • The exchange begins during the opening times of the Trade market, while the exchange essentially should be settled, at the end of market hours. • Exchange markets open at 10 am in the morning and shut down at 4 pm. Exchange trading • The SEBI or the Stock Exchange Board of India goes about as the guarantor for all exchanges. • In an OTC, there is no particular certification or understanding and the agreements are altered according to the prerequisite. Thus, the degree of hazard expands complex in an OTC market. where monetary forms are exchanged with each other. • The rising estimation of a US dollar is exchanged against the falling estimation of an Euro, and the exchange can happen the other way around.
Participants Arbitrageurs Speculators Hedgers
Hedgers-During the time spent supporting, gatherings, for example, people or organizations owning or intending to possess something are worried that the expense of the item may change before either getting it in the money market. Speculators- They are actually traders, that help to read trading report. Arbitragers-They do all the while purchasing and selling money related instruments like stocks futures in various markets. Participants in Derivative market
If you are entering in derivative trading then you have: Do complete research and make a plan for strategy. You must have an account for trading. Have a DEMAT account. Hire a trader. Always make sure that doesn’t go out of your budget. How to do derivative trading?
Futures-Futures exchange on trade. Traders will utilize a futures contract to fence their hazard or guess on the cost of a hidden resource. The companies engaged with the futures exchange are committed to satisfy a promise to purchase or sell the hidden resource. Futures
Forwards-They are like as futures but don’t trade on exchange. They only trade over the counter. At the point when a forward contract is made, the purchaser and dealer may have tweaked the terms, size and settlement process for the subordinate. As OTC items, forward contracts convey a more noteworthy level of counterparty chance for the two purchasers and merchants. Forwards
Swaps are subordinate contracts that permit the trading of money streams between two gatherings. The swaps, as a rule, include the trading of a fixed income for a drifting income. The most mainstream kinds of swaps are loan cost swaps, item swaps, and money swaps. Swaps
Options are like futures. Options give the purchaser of the agreements the privilege however not the commitment to buy or sell the basic resource at a foreordained cost. In light of the option sort, the purchaser can practice the choice on the development date (European options) or on any date before the development (American options). Options
Supporting danger exposure Underlying resource value determination Market efficiency Access to inaccessible resources or markets Why use derivative trading?
It is an advisory firm which provides services for equity management, commodity management, currency trading etc.. Their professional team helps you and advice you in planning of your business. They provide services according to customer requirements and advise to manage their asset. KTG Financial Advisory
Connect with KTG You will find the details at https://www.ktginvestment.com/. Do connect at- info@ktginvestment.com call us on: +91 6262610192 Address: Plot No 6-7, Pu 4, Scheme No 54, Vijay Nagar, Indore - Madhya Pradesh, India 452001