Derivatives
Derivatives are financial contracts that derive their value from an underlying asset such as stocks, commodities, currencies, etc, and are set between two or more parties. Derivatives are usually in the form of a contract, where the buyer is under an obligation to buy or the seller is under an obligation to sell the underlying asset at a specified price on a certain date in the future. Derivatives can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings.
Derivates are those types of security whose value is determined or derived from another financial asset such as stocks, indices, currencies, or commodities. Such derivatives largely include futures contracts and options.
Futures- A futures contract can be of stock or indices or of commodity too. When you buy a stock future, you promise to pay for the stock at a future date. If you sell a stock future that means you deliver a stock at a future date. The contracts are settled by adjusting the funds or cash on the exchange at a later date.
Options- In options there are two types of contracts, i.e. call or put. A call gives the option for the buyer the right to claim a particular stock or index at a pre-determined price. Whereas the put option gives the buyer the right to sell a particular stock or index at a pre-determined price. You have to pay a premium to buy an option. The options are based on the underlying assets like stocks and indices. A person buys a call option when he expects the underlying stocks or indices to rise and the person who expects the underlying stock or indices to fall buys puts of the particular stock or indices
Benefits of Derivatives Trading with SSG Group
- Get the most advanced tools for derivatives trading
- Seamless technical support & assistance
- Robust technical recommendations
- Effortless trading experience.
- Exposure to Hedging Risk