Derivatives Trading

Derivatives: What are they? A contract between two parties that specifies conditions—in particular, dates

and the resulting values of the underlying variables—under which payments, or

payoffs, are to be made between the parties

They can be viewed as a good short-term investment strategy with a much less

initial investment

It is less risky to trade in derivatives

Derivatives can also be traded through in the money market, foreign exchange

(forex), and credit

A security whose price is dependent upon or derived from one or more

underlying assets is known as Derivatives Trading

In Derivative Trading one is not actually purchasing the underlying asset or

buying into the company but agreeing to purchase them in the future.

Current Scenario: Derivatives trading has gained massive popularity across the globe, and more

recently in India.

After removal of prohibitions like trading in options by SCRA in 1995, RBI

clearance on options, interest rate swaps, currency swaps and other risk deducting

OTC derivative products, and expansion of definition of securities to include

derivatives by SCRA in 2000 has made India a vibrant market for trading in

derivatives generating massive volumes.

The Forward Markets Commission (FMC) has allowed setting up of commodities

futures exchanges. Today, we have 18 commodity exchanges, most of which trading

in futures.

For Equity Derivatives, NSE and BSE are the top most stock exchanges

allowing trading in derivates, by setting up an in-house segment instead

of creating a separate exchange for derivatives.

What R K Global Offers:

Derivative trading in the NSE and BSE F&O segments on a complete online-

based trading platform.

Strong Risk Management system

Helps in assisting risk averse clients with their hedging positions on one hand,

Also helps investors with high risk appetite with profitable ones on the other.

Stock Derivatives I Commodity Derivatives I Currency Derivatives

Brokerage Rs. 9/lot Brokerage Rs. 0.99/lot

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