Articles

Future contracts are a type of derivative contract where counterparties lock in a security or an asset at a fixed price to trade in the future. Unlike forward contracts, a futures contract is traded on the exchange instead of over a counter market. Future contracts help in protection against the price volatility of an asset. But its leverage is an inherent danger of losing too much too soon. Click here to know more about its types and pros and cons. 

Derivatives are a lucrative investment option for resident Indians and Non-Resident Indians alike. Yet, they can sometimes be a little confusing. In this segment, let’s go through what derivatives are and how you can invest in them as an NRI.

Derivatives are financial instruments or contracts whose values are derived from underlying assets. These assets can be almost anything.

While Options and Swaps are both Derivatives, they each have differences in how they work and how they are traded. These differences convey and require different approaches while investing in Derivatives. An investor can also combine these Derivatives to gain access to more complex variations and strategies. 

Derivatives are financial instruments, such as Futures and options contracts. Their values are derived from underlying assets like shares of listed companies. Derivative markets are financial markets for trading in derivatives. They can be further divided into two groups: One, markets for exchange-traded derivatives and, two, Over the Counter (OTC) derivatives.