Скачать или смотреть Different Types of Derivative Securities | डेरिवेटिव सिक्योरिटी के प्रकार

There are four main types of Derivative securities:
1. Futures -
Futures, also called futures contracts, are an agreement between two parties for the purchase and delivery of an asset at an agreed-upon price at a future date. Futures are traded on an exchange, with the contracts already standardized. In a futures transaction, the parties involved must buy or sell the underlying asset.
2. Forwards -
Forwards, or forward contracts, are similar to futures, but do not trade on an exchange, only retailing. When creating a forward contract, the buyer and seller must determine the terms, size, and settlement process for the derivative.

Another difference from futures is the risk for both sellers and buyers. The risks arise when one party becomes bankrupt, and the other party may not able to protect its rights and, as a result, loses the value of its position.
3. Options -
Options, or options contracts, are similar to a futures contract, as it involves the purchase or sale of an asset between two parties at a predetermined date in the future for a specific price. The key difference between the two types of contracts is that, with an option, the buyer is not required to complete the action of buying or selling.
4. Swaps -
Swaps involve the exchange of one kind of cash flow with another. For example, an interest rate swap enables a trader to switch to a variable interest rate loan from a fixed interest rate loan, or vice versa.

#futurescontracts #optionstrading #forwards #swap #derivatives #securities