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tods5eshoes · Wysłany: Czw 14:08, 10 Mar 2011 Temat postu: asic 6221

The Indian derivative market
India has been trading derivatives contracts in silver,[link widoczny dla zalogowanych], gold,[link widoczny dla zalogowanych], spices, coffee, cotton and oil etc for decades in the gray market. Trading derivatives contracts in organized market was legal before Morarji Desai��s government banned forward contracts. Derivatives on stocks were traded in the form of Teji and Mandi in unorganized markets. Recently futures contract in various commodities were allowed to trade on exchanges. For example, now cotton and oil futures trade in Mumbai, soybean futures trade in Bhopal,[link widoczny dla zalogowanych], pepper futures in Kochi, coffee futures in Bangalore etc. In June 2000, National Stock Exchange and Bombay Stock Exchange started trading in futures on Sensex and Nifty. Options trading on Sensex and Nifty commenced in June 2001. Very soon thereafter trading began on options and futures in 31 prominent stocks in the month of July and November respectively. Some of the observations of derivative market in India are: �� It is not for small-scale investors as it requires a sizeable investment from the investors. �� Derivatives have a big lot size and that too it is decided by the National Stock Exchange (NSE). In any case, it is never less than the lot size of 100. �� Definitely the returns are higher but that requires higher risk. Only investors which are ready to take fair amount of risk can expect higher returns. �� Besides, it requires an in-depth and detailed knowledge of derivatives and also has an experience in equity trading. The following are the three categories of the active participants in the Indian derivative market - Hedgers face risk associated with the price of an asset. They use futures or options market to reduce or eliminate this risk. Speculators b[link widoczny dla zalogowanych]ally focus on the future prices in market based on the type of financial instrument they are dealing with. Speculators are well supported by two major contracts called as futures and options which give them the advantage which can maximize the prospective gains but also it includes the risk of increasing the possibilities of losses. Arbitrageurs tend to take maximum gain by playing upon the discrepancy of the prices in multiple markets for similar trades. Over The Counter otherwise commonly called as OTC is another derivative market which has been growing strength to strength as it caters the needs of that part of investors who trade non standard goods on a regular basis. The regulation and governing rules and principles in relation to this derivate market is not strong enough to monitor this trading segment and also OTC should be given the right attention as it has the potential to grow. Ray Mason holds a MBA in International business. He currently works as a content creator at en. Oboulo. com. It is an ebay of documents contributed by journalists, Professors, Lawyers,[link widoczny dla zalogowanych], Students and other professionals. Papers are published in over 30 categories like Marketing, Business, History and more. For more information please visit: Oboulo. com - Your knowledge database! Presentations, book review, research papers, theses, reports, articles
Ray mason is an expert in the field of finance. Find more interesting inputs on Indian Derivative market hereTopics related articles：

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