scorecardresearchDerivatives Technical Analysis – Derivatives

Derivatives Technical Analysis


Derivatives are financial securities whose value or price is derived from an underlying asset or a group of assets, such as stocks, bonds, interest rates, commodities and currencies etc. The value of derivatives keeps on changing depending on the changing market conditions. Derivatives can be traded by predicting the underlying asset’s future price movement and can be utilized for a variety of purposes such as access to additional assets, hedging, and more.

There are four main types of derivates that can conveniently be traded on the Indian stock markets and are known as: Future Contracts, Options Contracts, Forward Contracts and Swap Contracts. Each of these is different from each other and has different conditions and risk factors.