What is the meaning of Derivative?


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Derivative

 

Derivative-

The valuation of main assets are based on underlying assets is known as Derivative.

The derivative market 4 parts-

  1. Spot market- It means where delivery of payment and settlement of transfer occur on spot.
  2. Forward market- `It is a market in which transaction execute after a particular a period of time.
  3. Future and option- It is market in which transaction execute after and depend on parties to execute the transaction.

 


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