Tag Archives: Derivatives

  • How Derivatives are used to minimize risk?

    Posted on February 6, 2012 by admin in Derivatives.

    The derivative market instruments were introduced to hedge risks as well as to satisfy the speculative needs of the investors. Hedging One use of derivatives is to be used as a tool to transfer risk by taking the opposite position in the underlying asset. Suppose someone has some stocks of a particular company in his […]

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  • Derivatives Basics

    Posted on November 1, 2011 by admin in Derivatives.

    A derivative is a security or instrument whose value is derived from the value of the underlying security. Derivatives are mainly used to hedge any position on any asset or reduce the uncertainty caused by sudden prices changes. Some derivatives are standardized by the Stock Exchanges and they can only be traded through Different exchanges […]

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