A derivative is an instrument that derives its value from an underlying asset. The Foreign Exchange Management (Foreign Exchange Derivatives Contracts) Regulations 2000 defines a foreign exchange derivatives contract as a financial transaction or arrangement in whatever form or name, whose value is derived from price movement in one or more underlying assets and includes: i. A transaction which involves [...]
In this article we will discuss about:- 1. Introduction to Stock Index Futures 2. Stock Index Futures World Over 3. Features of Stock Index Futures 4. Trading in Stock Index Futures 5. Pricing of Stock Index Futures Contract 6. NSE's Volatility Index: India VIX 7. Speculation in Stock Index Futures Trading 8. Hedging with Stock Index Futures 9. Reasons for [...]
Financial futures contracts were first introduced by International Monetary Markets Division of Chicago Mercantile Exchange in order to meet the needs for managing currency risks, and promoted by a galloping growth in international business. London International Financial Futures and Options Exchange (LIFFE), set up in 1982 had been dealing in currency futures, but have restricted their activity to interest rate [...]