SlideShare a Scribd company logo
1 of 22
Derivatives and New Investment Avenues By Kisan Rajpurohit- National Convention, Jaipur
School of Thought… By far the most significant event in finance during the past decade has been the extraordinary development and expansion of derivatives and emergence of new investment avenues. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it - a process that has undoubtedly improved national productivity growth and standards of living.    –  Alan Greenspan, Former Federal Reserve Chairman
Contents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Introduction ,[object Object],[object Object],[object Object]
..contd Commodities Bullion Weather etc COMMODITY DERIVATIVES Equity shares Debt instrument Forex Index Interest Rate etc FINANCIAL DERIVATIVES Underlying asset
History of Derivatives Genesis chapter 29 of the Bible in 1700 B.C Jacob purchased an option from Laban costing him seven years of labor. This option gave Jacob the right to marry Laban's daughter Rachel. However Laban, defaulted, perhaps making this not only the first derivative  but the first default on a derivative. Jacob did derivatives, one way or  the other.
History of Derivatives.. Contd ,[object Object],[object Object],[object Object],[object Object]
Growth of Derivatives Market in India
Types of Derivatives FUTURES SWAPS FORWARDS OPTIONS
Forwards ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Futures ,[object Object],[object Object],Rs 43920 Margin amount to be paid (say)15% Margin  Rs 292800 (Rs488*600) Future Contract Price Rs 488 Share Price 600 shares Lot Size Satyam Futures
Forwards Vs Futures Done on daily basis Not Done Valuation Margins required Not Required Margins Very High Poor Liquidity Exchange Any entity  Counterparty Standardized Customized Nature of the contract Futures Forwards
Options Is a right But not an obligation To buy or sell  something At a stated date At a stated price What is  an option?
Options: Types Call Gives a right but not an obligation to buy Put Gives a right but not an obligation to sell
Options Illustration: 20 1730   Situation 3 0 1770   Situation 2 230 2000   Situation 1 Gain/(Loss) Market price after 3 months   1750 Exercise price   1700 Current market price   20 Option premium
Swaps ,[object Object],[object Object],[object Object]
Swaps Party A Fixed rate Party B Floating Rate Lender Lender Interest rate swaps
Underlying Assets Gold Futures, Oil Futures, Metal Futures, Commodity Futures Commodities Currency Futures, Currency Options, Currency Swaps,  Foreign Exchange Interest Rate Futures, Interest Rate swaps, Interest Rate Options, Currency Swaps, Forward Rate Agreements etc Fixed Income Securities Stock Options, Stock Futures, Index Options, Index Futures Equities DERIVATIVES CASH MARKET
Derivatives: A useful innovation ,[object Object],[object Object],[object Object],[object Object]
The Dark Side
Future of Derivatives Market ,[object Object],[object Object],[object Object]
Thank You-Kisan Rajpurohit

More Related Content

What's hot

Mutual funds presentation for jagoinvesor mumbai group july 24
Mutual funds presentation for jagoinvesor mumbai group july 24Mutual funds presentation for jagoinvesor mumbai group july 24
Mutual funds presentation for jagoinvesor mumbai group july 24
Manish Chauhan
 
Final investment avenues
Final investment avenuesFinal investment avenues
Final investment avenues
Arnav Kharhyal
 

What's hot (20)

Investment
InvestmentInvestment
Investment
 
Wealth management session 1
Wealth management session 1Wealth management session 1
Wealth management session 1
 
Investment alternative for investors
Investment alternative for investorsInvestment alternative for investors
Investment alternative for investors
 
Etfin pro module 1 times pro
Etfin pro module 1 times proEtfin pro module 1 times pro
Etfin pro module 1 times pro
 
Wealth management session 2
Wealth management session 2Wealth management session 2
Wealth management session 2
 
low risk appetite
low risk appetitelow risk appetite
low risk appetite
 
Mutual funds presentation for jagoinvesor mumbai group july 24
Mutual funds presentation for jagoinvesor mumbai group july 24Mutual funds presentation for jagoinvesor mumbai group july 24
Mutual funds presentation for jagoinvesor mumbai group july 24
 
Introduction to investments
Introduction to investmentsIntroduction to investments
Introduction to investments
 
Gilt funds
Gilt fundsGilt funds
Gilt funds
 
Investment Alternatives
Investment AlternativesInvestment Alternatives
Investment Alternatives
 
IPM
IPMIPM
IPM
 
Debt Funds Simplified
Debt Funds SimplifiedDebt Funds Simplified
Debt Funds Simplified
 
Axis bank balanced fund
Axis bank balanced fundAxis bank balanced fund
Axis bank balanced fund
 
Sip presentation
Sip presentationSip presentation
Sip presentation
 
Final investment avenues
Final investment avenuesFinal investment avenues
Final investment avenues
 
Systematic investment-plan
Systematic investment-plan Systematic investment-plan
Systematic investment-plan
 
Understanding savings and investment
Understanding savings and investmentUnderstanding savings and investment
Understanding savings and investment
 
Investment methods
Investment methodsInvestment methods
Investment methods
 
IMPORTANCE OF DEBT FUNDS
IMPORTANCE OF DEBT FUNDSIMPORTANCE OF DEBT FUNDS
IMPORTANCE OF DEBT FUNDS
 
Middle income group financial planning
Middle income group financial planningMiddle income group financial planning
Middle income group financial planning
 

Viewers also liked

Chapter 02 the derivatives market in india
Chapter 02   the derivatives market in indiaChapter 02   the derivatives market in india
Chapter 02 the derivatives market in india
deepmehta11
 
Business Types and Investment Decisions
Business Types and Investment DecisionsBusiness Types and Investment Decisions
Business Types and Investment Decisions
guest0b2554
 
Lecture # 13 investment alternatives i
Lecture # 13 investment alternatives iLecture # 13 investment alternatives i
Lecture # 13 investment alternatives i
Bich Lien Pham
 
2. investment alternatives
2. investment alternatives2. investment alternatives
2. investment alternatives
Akash Bakshi
 
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
Senthilmathi Pradheep
 

Viewers also liked (20)

Investment Avenues
Investment AvenuesInvestment Avenues
Investment Avenues
 
Investment planning
Investment planningInvestment planning
Investment planning
 
Chapter 02 the derivatives market in india
Chapter 02   the derivatives market in indiaChapter 02   the derivatives market in india
Chapter 02 the derivatives market in india
 
Derivatives
DerivativesDerivatives
Derivatives
 
Business Types and Investment Decisions
Business Types and Investment DecisionsBusiness Types and Investment Decisions
Business Types and Investment Decisions
 
In-depth Study of Investor's Perception towards investment in Various Alterna...
In-depth Study of Investor's Perception towards investment in Various Alterna...In-depth Study of Investor's Perception towards investment in Various Alterna...
In-depth Study of Investor's Perception towards investment in Various Alterna...
 
Derivatives Ppt
Derivatives PptDerivatives Ppt
Derivatives Ppt
 
Investment Securities. alternatives & attributes
Investment Securities. alternatives & attributesInvestment Securities. alternatives & attributes
Investment Securities. alternatives & attributes
 
Investment Alternatives
Investment AlternativesInvestment Alternatives
Investment Alternatives
 
Lecture # 13 investment alternatives i
Lecture # 13 investment alternatives iLecture # 13 investment alternatives i
Lecture # 13 investment alternatives i
 
2. investment alternatives
2. investment alternatives2. investment alternatives
2. investment alternatives
 
Investment Avenues
Investment AvenuesInvestment Avenues
Investment Avenues
 
Devrivatives in india
Devrivatives in indiaDevrivatives in india
Devrivatives in india
 
Various investment avenues
Various investment avenuesVarious investment avenues
Various investment avenues
 
Derivatives in India
Derivatives in IndiaDerivatives in India
Derivatives in India
 
Financial Planning - Helping You Sail Successfully into the Future
Financial Planning - Helping You Sail Successfully into the FutureFinancial Planning - Helping You Sail Successfully into the Future
Financial Planning - Helping You Sail Successfully into the Future
 
INTRODUCTION TO FINANCIAL PLANNING
INTRODUCTION TO FINANCIAL PLANNINGINTRODUCTION TO FINANCIAL PLANNING
INTRODUCTION TO FINANCIAL PLANNING
 
Derivatives basic concept
Derivatives basic conceptDerivatives basic concept
Derivatives basic concept
 
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
31128326 an-analysis-of-investors-behaviour-on-various-investment-avenues-in-...
 
Derivatives
DerivativesDerivatives
Derivatives
 

Similar to Derivatives And New Investment Avenues

Nuts And Bolts Of Derivatives.Pdf
Nuts And Bolts Of Derivatives.PdfNuts And Bolts Of Derivatives.Pdf
Nuts And Bolts Of Derivatives.Pdf
Pankaj Gulati
 
Future of Derivatives in India
Future of Derivatives in IndiaFuture of Derivatives in India
Future of Derivatives in India
Ratan Deep Singh
 
Derivatives lecture1& 2-introduction
Derivatives lecture1& 2-introductionDerivatives lecture1& 2-introduction
Derivatives lecture1& 2-introduction
iipmff2
 
Derivatives session lect i iv
Derivatives session lect i   ivDerivatives session lect i   iv
Derivatives session lect i iv
gourav_soni
 

Similar to Derivatives And New Investment Avenues (20)

Nuts And Bolts Of Derivatives.Pdf
Nuts And Bolts Of Derivatives.PdfNuts And Bolts Of Derivatives.Pdf
Nuts And Bolts Of Derivatives.Pdf
 
Financial Derivatives
Financial DerivativesFinancial Derivatives
Financial Derivatives
 
Derivatives
DerivativesDerivatives
Derivatives
 
Future of Derivatives in India
Future of Derivatives in IndiaFuture of Derivatives in India
Future of Derivatives in India
 
88859133 currency-derivative
88859133 currency-derivative88859133 currency-derivative
88859133 currency-derivative
 
final sip
final sipfinal sip
final sip
 
Derivatives lecture1& 2-introduction
Derivatives lecture1& 2-introductionDerivatives lecture1& 2-introduction
Derivatives lecture1& 2-introduction
 
Derivative market in india
Derivative market in indiaDerivative market in india
Derivative market in india
 
Futures and Options
Futures and OptionsFutures and Options
Futures and Options
 
Derivatives session lect i iv
Derivatives session lect i   ivDerivatives session lect i   iv
Derivatives session lect i iv
 
Derivatives session lect i iv
Derivatives session lect i   ivDerivatives session lect i   iv
Derivatives session lect i iv
 
Currency Derivatives In India
Currency Derivatives In IndiaCurrency Derivatives In India
Currency Derivatives In India
 
Niraj on Financial Derivatives
Niraj on Financial DerivativesNiraj on Financial Derivatives
Niraj on Financial Derivatives
 
Financialderivativesppt priyanka
Financialderivativesppt priyankaFinancialderivativesppt priyanka
Financialderivativesppt priyanka
 
Financialderivativesppt priyanka
Financialderivativesppt priyankaFinancialderivativesppt priyanka
Financialderivativesppt priyanka
 
Derivatives
DerivativesDerivatives
Derivatives
 
Mcx sx faq
Mcx sx faqMcx sx faq
Mcx sx faq
 
Derivatives market
Derivatives marketDerivatives market
Derivatives market
 
001 Financial Derivatives
001 Financial Derivatives001 Financial Derivatives
001 Financial Derivatives
 
Derivatives - Basics of Derivatives contract covered in this ppt
Derivatives - Basics of Derivatives contract covered in this pptDerivatives - Basics of Derivatives contract covered in this ppt
Derivatives - Basics of Derivatives contract covered in this ppt
 

Recently uploaded

wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
allysaamping
 
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
zsewypy
 
一比一原版UNL毕业证成绩单如何办理
一比一原版UNL毕业证成绩单如何办理一比一原版UNL毕业证成绩单如何办理
一比一原版UNL毕业证成绩单如何办理
fafzen
 
First Order System Time Resphhhonse.pptx
First Order System Time Resphhhonse.pptxFirst Order System Time Resphhhonse.pptx
First Order System Time Resphhhonse.pptx
joshuaclack73
 

Recently uploaded (20)

wiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdfwiley-cpa-review-focus-notes revieww.pdf
wiley-cpa-review-focus-notes revieww.pdf
 
Population Growth and Economic Development
Population Growth and  Economic DevelopmentPopulation Growth and  Economic Development
Population Growth and Economic Development
 
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
一比一原版Adelaide毕业证阿德莱德大学毕业证成绩单如何办理
 
一比一原版UNL毕业证成绩单如何办理
一比一原版UNL毕业证成绩单如何办理一比一原版UNL毕业证成绩单如何办理
一比一原版UNL毕业证成绩单如何办理
 
How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?How do I sell my Pi Network currency in 2024?
How do I sell my Pi Network currency in 2024?
 
Abhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and LeadershipAbhay Bhutada: A Journey of Transformation and Leadership
Abhay Bhutada: A Journey of Transformation and Leadership
 
Maximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice DiscountingMaximize Your Business Potential with Falcon Invoice Discounting
Maximize Your Business Potential with Falcon Invoice Discounting
 
how to exchange pi coins for USD in 2024.
how to exchange pi coins for USD in 2024.how to exchange pi coins for USD in 2024.
how to exchange pi coins for USD in 2024.
 
First Order System Time Resphhhonse.pptx
First Order System Time Resphhhonse.pptxFirst Order System Time Resphhhonse.pptx
First Order System Time Resphhhonse.pptx
 
What exchange can I sell my pi coins in 2024
What exchange can I sell my pi coins in 2024What exchange can I sell my pi coins in 2024
What exchange can I sell my pi coins in 2024
 
how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)how do I get a legit pi buyer in the internet (2024)
how do I get a legit pi buyer in the internet (2024)
 
How do I unlock my locked Pi coins fast.
How do I unlock my locked Pi coins fast.How do I unlock my locked Pi coins fast.
How do I unlock my locked Pi coins fast.
 
Can a Pi network coin ever be sold out: I am ready to sell mine.
Can a Pi network coin ever be sold out: I am ready to sell mine.Can a Pi network coin ever be sold out: I am ready to sell mine.
Can a Pi network coin ever be sold out: I am ready to sell mine.
 
how do I cash out pi network coin in 2024.
how do I cash out pi network coin in 2024.how do I cash out pi network coin in 2024.
how do I cash out pi network coin in 2024.
 
Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]Monthly Market Risk Update: May 2024 [SlideShare]
Monthly Market Risk Update: May 2024 [SlideShare]
 
How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024How to exchange my pi coins on HTX in 2024
How to exchange my pi coins on HTX in 2024
 
Consumer rights and its importance and value
Consumer rights and its importance and valueConsumer rights and its importance and value
Consumer rights and its importance and value
 
how can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best pricehow can I sell my pi coins in the United States at the best price
how can I sell my pi coins in the United States at the best price
 
New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024New Stratus Corporate Presentation May 2024
New Stratus Corporate Presentation May 2024
 
How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?How can I sell my Pi coins in Vietnam easily?
How can I sell my Pi coins in Vietnam easily?
 

Derivatives And New Investment Avenues

  • 1. Derivatives and New Investment Avenues By Kisan Rajpurohit- National Convention, Jaipur
  • 2. School of Thought… By far the most significant event in finance during the past decade has been the extraordinary development and expansion of derivatives and emergence of new investment avenues. These instruments enhance the ability to differentiate risk and allocate it to those investors most able and willing to take it - a process that has undoubtedly improved national productivity growth and standards of living. – Alan Greenspan, Former Federal Reserve Chairman
  • 3.
  • 4.
  • 5. ..contd Commodities Bullion Weather etc COMMODITY DERIVATIVES Equity shares Debt instrument Forex Index Interest Rate etc FINANCIAL DERIVATIVES Underlying asset
  • 6. History of Derivatives Genesis chapter 29 of the Bible in 1700 B.C Jacob purchased an option from Laban costing him seven years of labor. This option gave Jacob the right to marry Laban's daughter Rachel. However Laban, defaulted, perhaps making this not only the first derivative but the first default on a derivative. Jacob did derivatives, one way or the other.
  • 7.
  • 8. Growth of Derivatives Market in India
  • 9. Types of Derivatives FUTURES SWAPS FORWARDS OPTIONS
  • 10.
  • 11.
  • 12. Forwards Vs Futures Done on daily basis Not Done Valuation Margins required Not Required Margins Very High Poor Liquidity Exchange Any entity Counterparty Standardized Customized Nature of the contract Futures Forwards
  • 13. Options Is a right But not an obligation To buy or sell something At a stated date At a stated price What is an option?
  • 14. Options: Types Call Gives a right but not an obligation to buy Put Gives a right but not an obligation to sell
  • 15. Options Illustration: 20 1730   Situation 3 0 1770   Situation 2 230 2000   Situation 1 Gain/(Loss) Market price after 3 months   1750 Exercise price   1700 Current market price   20 Option premium
  • 16.
  • 17. Swaps Party A Fixed rate Party B Floating Rate Lender Lender Interest rate swaps
  • 18. Underlying Assets Gold Futures, Oil Futures, Metal Futures, Commodity Futures Commodities Currency Futures, Currency Options, Currency Swaps, Foreign Exchange Interest Rate Futures, Interest Rate swaps, Interest Rate Options, Currency Swaps, Forward Rate Agreements etc Fixed Income Securities Stock Options, Stock Futures, Index Options, Index Futures Equities DERIVATIVES CASH MARKET
  • 19.
  • 21.