what does it mean?can anyone explain this to me in simple and plain english.
look very complicated to me,can anyone also tell me what options and futures are
A derivative is a financial instrument that derives its value from the value of an underlying asset. The underlying asset can be equity, commodities or any other asset. For the purpose of this chapter, we would restrict the scope to Equity derivatives only. Derivatives were introduced in the Indian stock market to enable investors to hedge their investments against adverse volatile price movements. However they are now commonly being used for taking speculative positions.
Broadly, Futures and Options are the derivative instruments that are traded on the two main exchanges, BSE and the NSE.
Broadly, Futures and Options are the derivative instruments that are traded on the two main exchanges, BSE and the NSE.