Derivatives
This query is : Resolved
08 December 2010
Can any one explain clearly what is a Derivative?thanks in advance...
14 December 2010
Hi
Derivatives is a product whose value is derived from the value of one or more basic variables, called underlying. The underlying assets can be equity, index, foreign exchange (forex), commodity or any other assets.
Derivatives product initially emerged as hedging devices against fluctuations in commodity prices and commodity –linked derivatives remain the sole form of such products for almost three hundred years. The financial derivatives come into spotlight in past 1970 period due to growing instability in the financial markets. However, since their emergence, these product have become more popular and by 1990s they accounted for about two-third of the total transactions in derivatives products.
Regards
Derivatives is a product whose value is derived from the value of one or more basic variables, called underlying. The underlying assets can be equity, index, foreign exchange (forex), commodity or any other assets.
Derivatives product initially emerged as hedging devices against fluctuations in commodity prices and commodity –linked derivatives remain the sole form of such products for almost three hundred years. The financial derivatives come into spotlight in past 1970 period due to growing instability in the financial markets. However, since their emergence, these product have become more popular and by 1990s they accounted for about two-third of the total transactions in derivatives products.
Regards
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