Question

Describe the derivatives market & its role in securities market . Example equity derivatives market

Answer 1

Derivatives are financial contracts whose value is dependent on an underlying asset or group of assets. The commonly used assets are stocks, bonds, currencies, commodities and market indices. ... Or simply cushion yourself from the losses in the spot market where the stock is being traded.

Answer 2

Answer:

Explanation:

Derivatives are financial contracts whose value is dependent on an underlying asset or group of assets. The commonly used assets are stocks, bonds, currencies, commodities and market indices. ... Or simply cushion yourself from the losses in the spot market where the stock is being traded.