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Hi can any one of of u say me in simple terms what is meant by derivatives and the important terms used in derivatives management.
Derivative includes:
Future and options
Trades are open for next 3 months.
You can keep open positions for lot sizes by paying some margin, ie. ranging between 15-25 % of total lot value.
You can deal only in lots, no single or partial trades allowed.
Dhawal

hi sadhna
derivatives is a agreement between two parties seller and buyer for buy/sell of securities, debt instrument, commodity for a future date at a prespecified period.
normally agreement period is for 1,2,3 month
agreement is must to be excerised last thursday of month
for example- one farmer make an agreement that he will sell his crops after few month at todays price, whatever is future price.
there are two type of deri. one is future and second one is option normally we call F&O
future is simple where buyer have to execute contract
in option where he gets the rights whether to buy or not.
story does not end here...........................
bye ashish bhandari

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