Derivatives

[ban_y2k]

Wat do u ppl think of the current scenario of derivatives trading ? Are ppl still unaware of the trade funda ?? or ppl just dont wann get into this thing as it is still more complicated then the old Equity Trading ?

 

[chhabraankit1]

ya even dese dayz der is lack of awareness among the investors n most of them rely on the brokers advice and even most of them do not know how their money is invested

 

[niravsworld]

well what i think is Derivative or not marketed properly

 

[ganguly111]

frndz can anybody help me to understnd how derivatives operate or can u suggest me any source to read?

 

[anyzen]

Derivatives is all about purchase and selling of contract and not the real asset.
SO nothing lies in the hand when expiry date arrives.

It is a risky business without adequate knowledge about derivatives.

Brokers advice derivates for larger volume of business transaction.
The loss or profit from derivative is large and investment is small when compared to real assets investment.

Eg. in real assets. if you need to purchase 100 share of XYZ ltd at Rs 100. your investment is 10000. where as in derivatives for purchase of 100 share of XYZ ltd at Rs 100 ur investment(margin money) May be 3000.

SO smaller investment higher the risk.

Profit or loss is going to be huge. Broker is not going to suffer. only u and me.
Only the greed factor makes people to go towards derivatives trading.

 

[harikrishnamodi]

hey this is the best of the topic to learn n wud surely help everyone to go ahead in the financial markets with the first hand knowledge of it..