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
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