Derivatives are underlying instruments which derive their value from other stocks which are traded in the top 30 list of Sensex.
Derivatives include:
1.)Currency Futures, Forwards
2.)Options
3.)Swaps
It allows a business or corporation those who are engaged into import and export business. Sometimes, small enterprises are not known about the Hedging of currency via Futures,Forwards and thereby turn their Profit and Loss Statement into Red.
Options also allows the same thing to buy or sell currency at a certain point of time (i.e. relevant time to pay for import or receipt of exports).This strategy comes under Future and Options in our Bombay Stock Exchange and Same in National Stock Exchange.
Swaps mainly happen in business terms such as Interest Rate Swaps and Currency Swaps. This happens for expansion strategy of domestic company into global or global company enters into our sovereign nation.
The provided information is basics for learn derivatives, because to go into depth of anything you need to know basics.
Derivatives include:
1.)Currency Futures, Forwards
2.)Options
3.)Swaps
It allows a business or corporation those who are engaged into import and export business. Sometimes, small enterprises are not known about the Hedging of currency via Futures,Forwards and thereby turn their Profit and Loss Statement into Red.
Options also allows the same thing to buy or sell currency at a certain point of time (i.e. relevant time to pay for import or receipt of exports).This strategy comes under Future and Options in our Bombay Stock Exchange and Same in National Stock Exchange.
Swaps mainly happen in business terms such as Interest Rate Swaps and Currency Swaps. This happens for expansion strategy of domestic company into global or global company enters into our sovereign nation.
The provided information is basics for learn derivatives, because to go into depth of anything you need to know basics.
