Categories
Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Equity
- PREV DEFINITION
Delisting
See AlsoDifferent types of futures contractsDerivatives - Calculus, Meaning, InterpretationFuture vs Option: Difference Between Futures and Options | 5paisa4 Advantages of OptionsDelisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
Read More
- NEXT DEFINITION
Dividend
Read More
Definition: A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps.
Description: It is a financial instrument which derives its value/price from the underlying assets. Originally, underlying corpus is first created which can consist of one security or a combination of different securities. The value of the underlying asset is bound to change as the value of the underlying assets keep changing continuously.
Generally stocks, bonds, currency, commodities and interest rates form the underlying asset.
What are Derivatives? Watch video to know more...
Read More News on
- DERIVATIVESCONTRACTBONDSCOMMODITIES
- STOCKSCURRENCYFUTURESINTEREST RATES
- PREV DEFINITION
Delisting
Delisting involves removal of listed securities of a company from a stock exchange where it is traded on a permanent basis.
Read More
- NEXT DEFINITION
Dividend
Read More
Related Definitions
- 52 Week High Low: Prices of commodities, securities and stocks fluctuate frequently, recording highest and lowest figures at different points of time in the market. A figure recorded as the highest/lowest price of the security, bond or stock over the period of past 52 weeks is generally referred to as its 52-week high/ low.Description: It is an important parameter for investors (as they compare the current trAlgorithmt is Algorithm?The term "algorithm" refers to a collection of guidelines to be followed in computations or other problem-solving procedures. This sums up the algorithm definition. It is also a process for handling a mathematical equation in several iterations, sometimes using recursive operations. It is often easy or complex, depending upon the nature of the problem. What are the characteristics oAlgorithm Trading: Algorithm trading is a system of trading which facilitates transaction decision making in the financial markets using advanced mathematical tools.Description: In this type of a system, the need for a human trader's intervention is minimized and thus the decision making is very quick. This enables the system to take advantage of any profit making opportunities arising in the market much beforAlpha: Alpha is an estimated numeric value of a stock's expected excess return that cannot be attributed to the market's volatility, but may be due to some other security.Description: In other words, it is the difference between the investment return and the bench mark return (for e.g. NSE Nifty). It is one out of the five technical risk ratios which help the investor to determine the risk reward p
- American Option: American options are derivatives contract with the option of redeeming the contract during the life of the option.Description: The unique feature of redeeming the contract before maturity or on the date of maturity gives it an added advantage of tradability. Due to this particular feature, it is the most widely traded option on trade exchanges. It is highly liquid in nature.It is to be nArbitrageArbitrage is the process of simultaneous buying and selling of an asset from different platforms, exchanges or locations to cash in on the price difference (usually small in percentage terms). While getting into an arbitrage trade, the quantity of the underlying asset bought and sold should be the same. Only the price difference is captured as the net pay-off from the trade. The pay-off should be Assetare things you own that you can sell for money. In accounting, an asset is any resource that a business owns or controls. It's anything that could be sold for money. The study of a balance sheet and assets and liabilities helps us to ascertain the equity value. This value can be used to value a company and understand if a company is overvalued or undervalued in the market. What is an asset?An asseAsset AllocationAsset allocation is an investment strategy by which an investor or a portfolio manager attempts to balance risk versus reward by adjusting the percentage of amount invested in an asset of a portfolio according to the risk tolerance of the investor, his/her goals and the investment time frame.Description: Financial assets vary in returns from each other depending on market conditions and user r
- Auction MarketAn auction market is the market where interested buyers and sellers enter ambitious bids and offers, respectively, at the same time. The price at which the security trade reflects the highest price the buyer is interested to pay and the lowest price at which the seller is interested to sell.The trade is executed at the price where the bid and the offer price match. It is different from an overBasis RiskBasis Risk is a type of systematic risk that arises where perfect hedging is not possible. When there is a variation between hedge/futures/relative price and cash/spot price of the hedged underlying at any given point of time, that variation is called ‘Basis’ and risk associated with it is called Basis Risk.Basis is simply the relationship between the cash price and future price of an underlyi
Related News
Looking at neglected sectors elsewhere in rather than investing in PSUs: KR SenthilnathanKR Senthilnathan from NAFA Asset Managers explores investment opportunities in undervalued sectors like PSUs and the ICE segment in auto. He emphasizes the importance of sector rotation, stock selection, and the potential for long-term returns. He further says: "Other than private banks, even other sectors also offer opportunities. There are certain stocks which are available at a 20-30% discount from the peak levels and a slight change in the earnings can surprise us."- Axis Capital Appoints Atul Mehra as MD and CEOAtul Mehra becomes Axis Capital MD and CEO, with Parag Gude and Dhaval Desai joining. Emphasis on strengthening investment banking and equities. Axis Capital maintains leadership amid global recognition of India's potential.
- Is the stock market open on Good Friday today?Equity markets will remain closed for a total of 145 days in the calendar year, the same as that of 2023.
- Gift Nifty down 30 points; here's the trading setup for today's sessionNifty futures on the Gift Nifty traded at 22,185, down 29 points or 0.13%, siganlling a negative start for Dalal Street.
- Best arbitrage mutual funds to invest in March 2024Arbitrage funds look for arbitrage opportunities available between the cash and derivatives markets. In other words, the fund managers in these schemes look for the price difference that they can exploit between the cash and derivatives markets. They may also invest in debt securities and equities if there are no arbitrage opportunities available in the market.
- Mind Over Money: From hunting multibaggers to karaoke; Rajesh Palviya shares his mantra to success in finance and wellnessFrom his disciplined approach to routines, including karaoke singing and completing 10,000 steps daily, to the transformative benefits of digital detox and fasting, Rajesh provides a holistic perspective on achieving balance and success in both personal and professional spheres.
- UK regulator to allow crypto exchange-traded notes for professional investorsBritain's financial watchdog said on Monday it will now permit recognised investment exchanges to launch crypto-backed exchange-traded notes, the latest regulator to pave the way for digital asset trading products.
- Futures vs Options: Understanding the differences and choosing the right derivative instrumentThe choice between futures and options depends on your investment goals and risk tolerance – Both instruments can be used for hedging, but options offer more flexibility and limited risk.
- Praveen DG, Chief Risk Officer, MCX, talks about Comquest, a competition organized by MCX, aims to educate students about the commodities markets. The 6th edition of Comquest will be held in Mumbai on March 1st, with participation from 485 colleges. It has received positive responses and encourages colleges to include commodities market in their curriculum.
- Technical glitch delays trading at MCX on Tuesday"The delayed start was attributed to the slow processing and generation of backend files for the members... The matter is being examined for identifying the root cause which led to the issue," said the exchange in a press release.
Load More
Trending DefinitionsRBI MPC Meet LiveBudget 2024 Real EstateRailways Budget 2024Interim Budget 2024Budget 2024 New Tax RegimeIncome Tax in Budget 2024Debt fundsRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation
