WHAT ARE DERIVATIVES?

Videos | Published on 11th March 2016 | 250

Learn the basics of Derivatives with Angel Broking. Presenting fun-to-learn 60sec videos by Angel Broking, to help beginners grasp the basics of equity & share-trading. Derivatives is a vital part of equity stock trading, however, its concepts are slightly harder to grasp. So here’s an easy route to understand what are derivatives and how you can earn money by trading derivatives.

Transcript :

what are derivatives means Rajat Rajat is new to equity investments and wants to know more about derivatives derivative is a contract between two or more people that entails speculating on the price of a certain underlying asset on a future date let’s say Rajat feels the shares of Zhen infra currently priced at rupees hundred is set to rise considerably in one month however Ahmed who owns some shares of Zhen infra is expecting the price to fall so Raja the name enter into a contract by which Rajat has to buy and um it has to sell the Zen infra shears at an agreed price of say rupees hundred and ten after 30 days irrespective of the market price the contract between Raj autonomous is a derivative it allows Raja to make profit by speculating and provides Ameth protection from incurring heavy losses futures and options are two common types of derivatives [Music]