Future&Options In Stock Market For Beginners.
Future and Options : Futures and Options are derivatives. What is Derivative? It is a financial instrument such as bonds, shares, etc. Derivatives is a financial instrument which derives its value from underlying assets. For example, stock derivative future TCS derived from its underlying asset TCS stocks in the cash market. Stock derivative TCS future increases when its current stock value of TCS increases and vice versa. So stock of TCS is the underlying assets and stock of TCS future is its derivative. So derivative is increased when underlying stock value increases and derivative is decreased when underlying stock value is decreased. So derivative would be index derivative such as nifty, bank nifty; commodity derivative such as gold, silver, wheat, etc; currency derivative such as INR, USD, etc. Types of Derivatives : There are four types of derivatives Future Options Forward Swaps. ...