Derivatives

[or_nagaraj]

Naan pudidaaga demat semippai open seitu ullen.Ethai vaanguvadu endru kulappa maaga ulladu.Enakku equity pattri oor alavu teiryum aaanaal derivatives and options patti teiyaadu

Derivatives patti vilakkavum.athai vaangauvadu eppadi.athu namakku laabam taruma?

options patiyum vilakkavum(call and put)


ungal anbu nanban
Nag

[bullbuddy]

Derivatives are instruments which are derived on a different underlying financial entity. i.e they are based on a different entity..for example if we consider 'gold', then we have 'gold futures' as the derivative - which is based on gold.... similarly, if we take 'nifty', then we have 'nifty futures' , as the derivative.
These derivatives can also be traded in the market, similar to their underlying entities. However the price of these derivatives will be linked with the price of the underlying entity...

These derivatives can be bought from market like any other stocks....There is one more category of derivatives called 'Options'. For example 'nifty options'. Roughly, buying an option can be called 'call' and selling it can be called as 'put'.....

[or_nagaraj]

Thanks bullbuddy.

Can you give me the example in terms of quantity Pls?
Is it reliable to buy?
how about profit in this?