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Types of derivative

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Types of derivative  Types of derivative: 1 forward                            2 future                      3 option                      Let’s understand this by taking an Example 1 forward/over the counter :                                                   Here buyer and seller directly involve in the contract without involving of mediator here value and time both are determined by mutual agreement between buyer & seller. 2 future derivate:  it is opposite of forward /otc here a mediator life SEBI derivative mediatory bank etc are involve all value and time  both are determined by mediator eg let continue given  example of below if the pri...

Derivative Markets

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What is derivative market?            A derivative market is market which involves a derivative contract were the value of that contract is fully depend upon the underlying asset. For Eg : In IPL ticket the value of the ticket depend upon,  till the final match of IPL after that the value turn to zero. Let’s take another example:                 PETROL                                                        DIESEL             Derivative product            ...