Sign Up

Continue with Facebook
Continue with Google
or use

Have an account? Sign In Now

Sign In

Continue with Facebook
Continue with Google
or use

Forgot Password?

Don't have account, Sign Up Here

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

Have an account? Sign In Now

You must login to ask question.

Continue with Facebook
Continue with Google
or use

Forgot Password?

Need An Account, Sign Up Here

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Sign InSign Up

Ansfind

Ansfind Logo Ansfind Logo Ansfind Logo Ansfind Logo
Add question

Ansfind Navigation

  • About Us
  • Groups
    • Add group
Search
Ask A Question

Mobile menu

Close
Ask a Question
  • Home
  • Communities
  • Questions
    • New Questions
    • Trending Questions
    • Hot Questions
  • Polls
  • Tags
  • Points
  • Users
  • FAQs
  • Help
  • Contact Us
Manu Murthy
Manu Murthy
Asked: August 31, 20212021-08-31T19:50:20+05:30 2021-08-31T19:50:20+05:30In: Finance

What Do You Mean By Derivatives? Give An Example.

What Do You Mean By Derivatives? Give An Example.

derivatives
  • 1
  • 11
  • 35
  • Share
    • Share on Facebook
    • Share on Twitter
    • Share on LinkedIn
    • Share on WhatsApp
Answer

    Related Questions

    • Explain with examples how are people involved with the banks?
    • What explains the difference between retail and commercial banking?
    • What would be the best way to explain my low GPA (due to carelessness) in my SOP for graduate school ...

    1 Answer

    • Voted
    • Oldest
    • Recent
    1. Anonymous
      2021-08-31T19:52:49+05:30Added an answer on August 31, 2021 at 7:52 pm

      Derivatives

      A derivative is the contract between a buyer and a seller where the seller agrees to purchase the underlying securities at a specified price and time in the future.

      Derivatives means investment that is used to trade price risk. It will buy/sell derivatives that increase or reduce the price risk on the stated securities. Derivatives market is mostly operated in electronic trading, OTC and brokerage markets.

      Derivatives means the transaction where different types of securities of one company are traded. Most commonly, this is done through Exchange Traded Funds (ETF), Notes and Options. In derivatives, stocks are exchanged for different types of instruments like CDS (Credit Default Swaps), Equity indices, Commodities and Interest rates.

      Why To Use Derivatives?

      Derivatives market helps businesses to reduce their operational costs. The cost of derivatives is reduced by the lowest transaction costs. It also increases margins and promotes market efficiency. Derivatives market enables businesses to diversify their risk while maintaining the original value.

      Here are the types of derivative:

      1. Credit Derivatives
      2. Interest Rate Derivatives
      3. Commodity Derivatives
      4. Currency Derivatives
      5. Financial Derivatives
      6. Asset Swap Derivatives
      7. Foreign Exchange Derivatives
      • 3
      • Reply
      • Share
        Share
        • Share on Facebook
        • Share on Twitter
        • Share on LinkedIn
        • Share on WhatsApp
    Leave an answer

    Leave an answer
    Cancel reply

    Browse

    Choose from here the video type.

    Put Video ID here: https://www.youtube.com/watch?v=sdUUx5FdySs Ex: "sdUUx5FdySs".

    Sidebar

    Top Users

    Weboptify

    Weboptify

    • 3,290 Points
    Wish Lay

    Wish Lay

    • 2,360 Points
    Manu Murthy

    Manu Murthy

    • 1,635 Points

    Adv 250x250

    • About Us
    • Home
    • Communities
    • Polls
    • Tags
    • Points
    • Users
    • Help
    • Contact Us
    • Referrals
    • Policies
      • Privacy policy
      • Terms of use
    Revenue

    © 2022 Ansfind. | Designed by Weboptify

    monetization_on category home emoji_events
    search
    help

    Insert/edit link

    Enter the destination URL

    Or link to existing content

      No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.