Computer Science

Introduction to Derivatives in Stock Market

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Types of Derivatives in Stock Market

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Purpose of Derivatives in Stock Market

[{"selector":"#anim-4a0a5576-9982-4583-aca2-746fdf2785fa","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-60efe7fd-bf94-4815-95ca-f86f636c2618","keyframes":{"transform":["translate3d(0px, -9984.46222%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43ec27d2-a193-46a9-b203-40f353f4ddb6","keyframes":{"opacity":[0,1]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8be82f86-276b-4ae0-b89f-691f8c5ea2df","keyframes":{"transform":["rotate(-360deg) translate3d(0px, 180.18517%, 0) rotate(360deg)","rotate(-360deg) translate3d(0px, 0px, 0) rotate(360deg)"]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c5d8233-03c2-4731-86ee-517cd6185efe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(35.07093706491227%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Derivatives in the stock market are used to manage risks, speculate on price movements, and gain leverage.

Benefits of Using Derivatives

[{"selector":"#anim-4a0a5576-9982-4583-aca2-746fdf2785fa","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-60efe7fd-bf94-4815-95ca-f86f636c2618","keyframes":{"transform":["translate3d(0px, -9984.46222%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43ec27d2-a193-46a9-b203-40f353f4ddb6","keyframes":{"opacity":[0,1]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8be82f86-276b-4ae0-b89f-691f8c5ea2df","keyframes":{"transform":["rotate(-360deg) translate3d(0px, 180.18517%, 0) rotate(360deg)","rotate(-360deg) translate3d(0px, 0px, 0) rotate(360deg)"]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c5d8233-03c2-4731-86ee-517cd6185efe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(35.07093706491227%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] What are derivatives in the stock market? They offer flexibility, risk management, and opportunities for investors and traders.

Risks Involved with Derivatives

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[{"selector":"#anim-4a0a5576-9982-4583-aca2-746fdf2785fa","keyframes":{"opacity":[0,1]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-60efe7fd-bf94-4815-95ca-f86f636c2618","keyframes":{"transform":["translate3d(0px, -9984.46222%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43ec27d2-a193-46a9-b203-40f353f4ddb6","keyframes":{"opacity":[0,1]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8be82f86-276b-4ae0-b89f-691f8c5ea2df","keyframes":{"transform":["rotate(-360deg) translate3d(0px, 180.18517%, 0) rotate(360deg)","rotate(-360deg) translate3d(0px, 0px, 0) rotate(360deg)"]},"delay":1200,"duration":1200,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c5d8233-03c2-4731-86ee-517cd6185efe [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(35.07093706491227%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Find out More..