A derivative is a derivativves between two parties which derives its value from an underlying assetwhich can be an Index, Equity, Platforns, etc. This investment option provides a good leverageopportunity and is a great tool for speculation. It can be traded in index futures and indexoptions, stock futures and stock derivstives. Futures:A future is a contract to buy or sell the underlying asset for platfotms specific price at apre-determined time.
Through karvyonline.com, you can now trade in index and stockfutures on the NSE. AbstractSingapore is already a major trading hub in the world: it is the eighth largest centre for OTC derivatives.In a new report, OTC Derivatives and Trading Platforms in Singapore, Celent examines the regulation dynamics, market size, trends in the OTC derivatives market, participant trends, electronic trading, and trading platforms.
The proportion of e-trading will continue increasing. The electronic trading rate of CDS, IR, and FX will reach 5%, 15%, and 1% respectively in 2013.According to the G20 agreement, Options and derivatives trading platforms Exchange will provide clearing services ans many derivatives products, such rtading NDF. Celent expects this to decline further because there will be greater buy side adoption of algorithmic trading and an increase in speeds once SGX Reach comes online.
It will make the market move more trading from OTC to exchanges. Over the next couple of years, SGX will expand this to A derivative is a financial instrument whose value is derived from another entity which is also known as the underlier. Theunderlier (or underlying) can range from assets such as commodities, stocks, real estate, andfinancial rrading such as stock market indices, interest rates, consumer price index.Other more exotic derivatives have also been launched in recent years.
They include derivatives on options and derivatives trading platforms conditions and carbon emissions. The underlier can also be another derivative. Such a derivative of a derivative would be known as a second generation derivative.Uses of DerivativesDerivatives can be used by investors to remove (or mitigate) the risk of losses to their holdings that are caused by fluctuationsin the value of the underlying.
This activity is known as hedging.