As Indian securities markets continue to evolve, market participants, investors and regulators are looking at different ways in which the risk management may be efficiently met through the introduction of Derivative markets. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. Derivatives are risk management instruments, which derive their value form an underlying asset. The underlying asset can be bullion, index, share, bonds, currency, interest etc. banks, securities firms, companies and investors to hedge risks, to gain access to cheaper money and to make profit, uses derivatives. Derivatives are likely to grow even at a faster rate in future. However, the advent of modern day derivative contracts is attributed to the need for farmers to protect themselves from any decline in the price of their crops due to delayed monsoon, or overproduction. The first futures' contracts can be traced to the Yodoya rice market in Osaka, Japan around 1650. These were evidently standardized contracts, which made them much like today's futures. The Chicago Board of trade (CBOT), the largest derivative exchange in the world, was established in 1848 where forward contracts on various commodities were standardized around 1865. From then on, futures contracts have remained more or less in the same form, as we know them today.
[...] Exchanges should also submit details of the futures contract they purpose to introduce The trading members are required to have qualified approved user and sales person who have passed a certification programme approved by SEBI THE ECONOMIC ROLE OF DERIVATIVES Derivative markets provide three essential economic functions: Risk management Price discovery Transactional efficiency Risk management: The principal benefit of the Derivative market is that it provides the opportunity for risk management through Hedging. Risks involved in derivatives: Risk can be defined as possibility or probability of loss”. [...]
[...] SIGNIFICANCE OF THE STUDY: The present study on Derivative futures is very much appreciable on the grounds that it gives deep insights about the stock futures market. It would be essential for the perfect way of trading in stock futures. The study elucidates the role of derivative futures in Indian financial markets. Studies of this type are more useful to academicians and scholars to make further insights into the various aspects of derivative futures in similar organizations. An investor can choose the right underlying for investment, which is risk free. [...]
[...] They are Which futures commodity Which expiration month Whenever to be long or short TECHNICAL ANALYSIS: Technical analysis is a process of identifying trend reversals at an earlier stage to formulate the buying and selling strategy with the help of several indicators. The technical analysis mainly focuses the attention on the past history of prices. Generally technical analysts choose to study two basic market data- price and volume. They mainly predict short-term price movement rather than long-term movement. History of Technical Analysis: The technical analysis is based on the doctrine given by Charles H. [...]
[...] In the fourth chapter study on “Technical Analysis of Derivative stock futures” in “Share khan ltd is analyzed. In the fifth chapter findings and suggestions of the study are given. ARTICLE-1 THE EFFECT OF DERIVATIVE TRADING ON THE UNDERLYING MARKETS: EVIDENCE FROM CANADIAN INSTALMENT RECEIPTS TRADING Narat Charupat aDeGroote School of Business, McMaster University Main Street West, Hamilton, Ontario, Canada L8S 4M4 Received 16 April 2003; revised 29 March 2004; accepted 4 October 2004. ABSTRACT We examine the impact of installment receipts (IRs) trading on the underlying stocks' volatility. [...]
[...] Key Features Membership on the Bombay Stock Exchange Limited and the National Stock Exchange Broking services in cash and derivatives segments, online as well as offline under the brand of 5paisa.com Presence across 19 states through a 177 strong branch networks, with 75,000 online registered users Provision of free and world-class research to all clients DATA ANALYSIS Table 4.1 : Table showing Closing price and Moving Average of RELIANCE IND: Chart 4.1 : Date Stock Price Moving Average Chart showing Daily price movement and Moving averages of RELIANCE INDIA. [...]
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