A derivative is a mutual contract between two parties which derivatives its value from an underlying asset. These contracts are time-bound contracts whose value changes in accordance with the value of the underlying asset.
In derivatives trading, an underlying asset is the financial instrument represented by a derivative and is what gives a derivative its value. An underlying asset often takes the form of stocks, bonds, indices, currencies or commodities, but it can be ...
Derivative contracts are time-bound contracts which are valid only for a certain period of time. These contracts expire on a weekly/monthly basis. Equity derivative contracts, currency derivative contracts and commodity currency contracts have their ...
Yes. Since all derivative positions are settled in cash, the investor can short sell futures contracts without having the underlying shares in his/her Demat account.
It is mandatory for derivative positions to be settled in cash on a daily basis. At the end of each day, settlement of open derivative positions takes place at the exchange provided closing price. The difference between the opening price and the ...