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Equity Tips

Equity Research Lab is an ISO 9001-2011 Certified And SEBI Registered one of the leading Stock Advisory Company, which Provides Stock Tips, Mcx Tips, Commodity Tips, Equity Tips, Forex trading on Mobile with High Accuracy.

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Equity Tips

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  1. www.equityresearchlab.com

  2. ECONOMIC FUNCTION OF THE DERIVATIVE MARKET EQUITY TIPS Inspired of the fear and opinion with which the derivative markets are commonly looked at,  these markets perform a number of the economic functions.

  3. 1.Prices  in  an  organized  derivatives  Market reflect  the  perception  of  market  participants about the future and lead the prices of underlying to the perceived future  level. The prices of derivatives converge with the prices of the underlying at the passing of the derivative contract. Thus derivatives help in discovery of the future as well as current prices. 2.The derivatives market helps to transfer risks from those who have them but may not like them to those who have an demand for them. 

  4. 3. Derivatives, due to their characteristic nature, are linked to the underlying cash markets. With the introduction of the derivatives, the underlying market witnesses the higher trading volumes because of the participation by more players who would not otherwise participate for the lack of an arrangement to transfer risk. 4. Speculative trades shift to the more controlled environment of the derivative market. In the absence of an organized derivatives market, speculators trade in the underlying cash markets. Marginal, monitoring  and  control of the activities of various participants become extremely difficult in these kind of mixed markets. 

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