In today's post we will introduce you the Financial Derivatives in the Indian Financial Market. So, What exactly is a Financial Derivative?? Derivatives are Financial Instruments that derive their value from other existing Asset Classes. The term Derivatives indicates the instruments derives its values entirely from the asset it represents. Given Below are the type of Asset Classes : - Equity, - Bullion, - Currency, - Commodity, - Realty, - Rate of Interest and - Livestock. When you invest in Derivatives , you actually place a Bet on whether the value of the asset represented will increase or decrease by a certain percentage and within a set period of time. There are 3 types of participants in a Derivatives Market: 1. Speculators - Speculators are the High Risk Takers . they take risk to earn profits by Buy in low and Sell in High or First Sell in High and later Buy in Low. 2. Hedgers - Hedgers are cautious players who p...
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