Overview of Derivatives market

In the derivatives market, the right to trade shares on a particular day is traded instead of trading stocks. This is a very good thing to provide good knowledge and information. The associated risk return is very high compared to the spot market

What is the spot / spot market? : The spot market is the market where settlement is done at the end of the day.

What is the role of exchange in derivatives? : The exchange gathers deposits and uses future deposits to settle future contracts daily so that future contracts / options will not be broken.

What is margin / MTM / premium / strike price / due date / lot? : The margin is the amount charged by the exchange to process the default, MTM is the daily payment premium of future contracts, the option amount paid by the buyer to the seller, the exercise price is the right to trade, the expiration date of the stock price is It is a settlement day. Amount of money

How is the option contract different from the future contract? : If the option is mandated, the option does not undertake future trading obligations.

What is the call and put option? Who decides the insurance premium? : Call option is the right to trade option and the right to sell is determined by seller and seller.

What is a futures contract? : Futures contract is the right to buy and sell shares on the scheduled date. If the obligation is not fulfilled, the deposit will be lost

Why do traders need futures / bullish / sellers? : Traders must invest all the necessary funds to buy and sell shares. For futures / options, he only has to pay the margin / premium, which is far less than the value of the stock.

Is it possible to trade NIFTY? How do you explain? : There is no nice stock. The index can be traded in the derivatives market

What is the difference between actual payment and cash settlement? Note: Actual settlement means that the stock certificate will be delivered and deposited in the demat account. Payment or deduction of currency difference in cash settlement

The derivatives market is a trillion dollar market all over the world. Derivatives are either listed or over-the-counter derivatives (OTC). OTC derivatives are the most common forward contract, while listed derivatives are futures, options and swaps. A good explanation of these derivatives is here. At the time of writing, the Indian derivatives market value is 15 times that of the stock market. Our goal is to put the derivatives and securities markets in a block chain. In real world, derivative contracts are created, traded and settled by centralized or centralized exchanges. This intensive party creates derivatives, collates purchasers and sellers, guarantees transactions and receives fees from purchasers and sellers. The central party solved the problem of information asymmetry

Overview of WandX Beta Version There are two ways to investigate products that can be created with WandX. It is a way to invest in custom derived products created by the cryptographic currency established on WandX and DEX (Distributed Exchange) to guess changes in different markets and changes in the field of WandX. Foreign Exchange Market Our goal is to create a framework for creating any financial products for crypt 0 assets. Please check us at wandx.co for more information!

Module 3 will continue to outline financial markets and tools. Next we look at the other two main asset classes, equity securities and derivatives. You will learn about finding the difference between stocks and bonds, cash flow related to stocks and preferred stocks, and stock price. Also learn about option strategy. Once module 3 is completed, you can explain all the major asset classes, including derivatives, such as options, forwards, futures. You will be able to explain the difference between them and those benefits

Derivatives are a big problem. The market value of global derivatives is estimated at about 5.5 trillion dollars. Compared with 0.4 T encryption, 38 T liquidity and the 73 TT global stock market. Derivatives such as options, futures and swaps are tools that help banks, funds and companies manage risks. At the same time, in many cases, the derivatives are leveraged. That is, counterparties usually do not have funds in their accounts to cover all the risks. This created a complex payment system that maintains margins and margin calls. This system failed in 2008. The margin requirement destroyed Lehman Brothers and others. The government must rescue Wall Street to release an amazingly large number of default derivative contracts