WHAT IS DERIVATIVE?
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Answer / tanzeem
A derivative can be defined as something which
derives its value from an underlying product being a stock,
currency, commodity or anything that carries a market
price.
The market price of a product is subject to
fluctuations due to various factors effecting its demand &
supply thereby associating itself to various risk factors.
SO, derivative is a by-product of the core product which
can be used to hedge, speculate & also undertake arbitrage
activities.
| Is This Answer Correct ? | 201 Yes | 16 No |
Answer / laxmanrao
DERIVATIVE IS A FINANCIAL PRODUCT WHICH VALUE IS DERIVED
FROM UNDERLYING ASSET.
| Is This Answer Correct ? | 191 Yes | 27 No |
Answer / sidhartha
A derivative derives its value from an underlying product
that carries a market price eg. stock, currency, commodity
or index.
derivatives is a by-prduct and can be used to speculate,
hedge and undertake arbitrage activities
| Is This Answer Correct ? | 40 Yes | 8 No |
Answer / s.sridhar
Derivatives is a product whose values are derived from the
values of one or more basic variables, called underlying.
The underlying asset can be equity, index, foreign exchange
(forex), commodity or anyother assets.
| Is This Answer Correct ? | 34 Yes | 8 No |
Answer / reddy
derivative is a security. whose value depends on the values
of other more basic underlying variable.
| Is This Answer Correct ? | 49 Yes | 37 No |
Answer / vandana
A security whose price is dependent upon or derived from
one or more underlying asset.The derivative itself is
merely a contract between two or more parties.Its value is
determined by fluctuations in the underlying asset.The most
common underlying asset include
stocks,bonds,commodities,currencies,interest rates and
market indexes.
| Is This Answer Correct ? | 16 Yes | 8 No |
Answer / bharat chandra das
Derivative is an instrument whose value is derived on
underlying assets.underlying assets means stock ,
share,bonds or commodity.It is a product which reduce risk
on investment.
| Is This Answer Correct ? | 17 Yes | 9 No |
Answer / prasant kumar giri,jajpur,mba,
derivative is value of financial product which is derived
from the underlying asset.underlying assets means stock ,
share,bonds or commodity.It is a product which reduce risk
on investment.
| Is This Answer Correct ? | 10 Yes | 4 No |
Answer / ramalingam
Derivatives are monetary agreement for which the base
value is derived from the values of some underlying
assets. The underlying assets are shares, bonds,
commodities and also their common indecies.
| Is This Answer Correct ? | 6 Yes | 1 No |
Answer / saurabh
Derivative is divided into two i.e. Derive + native =
Derivative. Derive is to obtained or generated and native
is the source i.e. the real asset on which its Value can be
determined.
A Derivative is a document the vale of which depends on the
prevailing market price of the underlying assets which it
consists.Example: A Single Derivative may contain 50 Shares
of a Company.
Derivative also contains :
Stock Derivatives
Currency Derivatives
Commodity Derivatives
First one contains Shares as underlying assets, second
contains Currency as underluing asset and the third
contains Commodities such as Gold, Grains, Oils, Sugar,
Rice, Wheat etc.as its underlying assets.
Well i would like to Highlight that this Practise should be
banned in India because just for enjoyment and abnormal
gains minority S (Traders) in these markets the
commodities prices have risen by more than 300% i.e. 3 to 4
times and poor people are deprived of a bare necessity i.e.
DAAL- ROTI....Real Pity....
| Is This Answer Correct ? | 9 Yes | 4 No |
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