NISM Series 7 Securities Operations & Risk Management | NISM VII Course | NISM SORM Course - Derivatives - Contracts - Underlying - Interest rate, currency, commodity derivatives

Derivative is a product whose value is derived from the value of an underlying asset or group of assets—a benchmark. The derivative itself is a contract between two or more parties. The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. Derivative products are in the form of Forwards, Futures, Options and Swaps. Derivatives can trade over-the-counter (OTC) or on an exchange. a. a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security; b. a contract which derives its value from the prices, or index of prices, of underlying securities; c. commodity derivatives; and d. such other instruments as may be declared by the Central Government to be derivatives; Equity Derivatives are financial instruments whose value is derived from price movements of the underlying asset, where that asset is a stock or stock index. Index Futures and Options: Currently in the Indian markets, future and options contract are available for trading on the indices such as BSE’s SENSEX, MSEI SX40 and NSE’s NIFTY 50 and sectoral indices of banks etc. Currency Derivatives trading was introduced in the Indian financial markets with the launch of currency futures trading in the USD-INR pair in 2008.4 Currently in India, currency futures contracts are traded on four INR pairs i.e., USDINR, EURINR, GBPINR and JPYINR and on three cross currency pairs i.e., EURUSD, GBPUSD and USDJPY on the recognized stock exchanges. #derivatives #indexfutures #indexoption #indexoptions #currencyfuture #commoditymarket #interestratefutures NISM Mock Tests - https://modelexam.in/nism-exams/nism-mock-test.html NISM Study Material - https://modelexam.in/nism-exams/nism-study-material.html NISM 7 SORM Exam Preparation - https://modelexam.in/nism-exams/nism-series-7-sorm.html #financemarket #capitalmarket #depository #nism #sebi #financialeducation #sharemarket #stockmarket #stockmarketforbeginners #stockmarketindia #securities #securitiesmarket #securitiesoperations