☆Free Stock Market Basics course in chennai☆Free Share Market Basics course in chennai ☆Free Study Material for Every course ☆ EQUITY MARKET ANALYSIS COURSE☆ COMMODITY MARKET ANALYSIS COURSE ☆ FOREX MARKET COURSE☆ NCFM COURSE (Only weekend Classes) ☆ TECHNICAL ANALYSIS COURSE (Only weekend Classes) ☆ INTRADAY TRADING SOFTWARE ☆ STOP LOSING MONEY-LEARN & EARN WITH 100% FINANCE PROTECTION☆WE CONTINUE OUR SUPPORT AFTER COURSE☆FREE PORFOLIO SERVICE FOR MIDDLE CLASS INVESTORS ☆

What are Derivatives?

What are Derivatives?

The term "Derivative" indicates that it has no independent value, i.e. its value is entirely "derived" from the value of the underlying asset. The underlying asset can be Securities, Commodities, Bullion, Currency, Livestock or anything else. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities.

With Securities Laws (Second Amendment) Act,1999, Derivatives has been included in the definition of Securities. The term Derivative has been defined in Securities Contracts (Regulations) Act, as:-
•a security derived from a debt instrument, share, loan, whether secured or unsecured, risk instrument or contract for differences or any other form of security;
•a contract which derives its value from the prices, or index of prices, of underlying securities.