Derivatives

1. DERIVATIVES MARKET
PRESENTED
BY
Mrs. SAMIYA MUBEEN
RESEARCH SCHOLAR
BANGALORE UNIVERSITY
BANGALORE.

2. INTRODUCTION
NEEDS FOR DERIVATIVES MARKETS
PARTICIPANTS IN DERIVATIVES MARKETS
TYPES OF DERIVATIVES
ADVANTAGES DERIVATIVES MARKETS
DISADVANTAGES DERIVATIVES MARKETS

3. Derivatives are financial instruments whose prices are derived from the prices of other financial instruments which are also know as UNDERLYING ASSETS.
It relates to equities, loans, bonds, interest rates and currencies.
DERIVATIVES

5. NEEDS FOR DERIVATIVE MARKET

6. PARTICIPANTS IN DERIVATIVES

7. HEDGERS

8. SPECULATORS

9. ARBITRAGERS

10. TYPES OF DERIVATIVES
FORWARDS
FUTURES
OPTIONS
WARRANTS
LEAPS
BASKETS
SWAP

11. FORWARDS

13. FUTURE

18. WARRANTS

19. LEAPS

20. BASKETS

21. SWAPS

22. INTEREST RATE SWAPS

23. CURRENCY SWAPS

24. Price Discovery
Risk Management
They improve market efficiency for the underlying asset
Derivatives also help reduce market transaction costs
ADVANTAGES DERIVATIVES MARKETS

25. The derivatives markets arises from the lack of thorough investigation.
Lack of information about derivatives markets.
An investor who is not comfortable with uncertainty in investment might be more comfortable taking on a different type of investment structure.
DISADVANTAGES DERIVATIVES MARKETS