Derivatives

  • Recently, the Securities and Exchange Board of India (SEBI) clarified that it was not looking to reduce retail participation in the derivatives segment.
  • A derivative is a contract between two parties which derives its value/price from an underlying asset.
  • The commonly used assets are stocks, bonds, currencies, commodities and market indices.
  • These instruments allow investors and traders to speculate on the price movements of the underlying asset without owning it directly.
  • Derivatives serve various purposes, including hedging against risks, providing leverage, and facilitating price ....
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