Derivatives are contracts used for risk management. It involves instruments like forwards, futures , options, swaps etc. In India Futures & options are very popular. Derivatives have underlying assets like financial assets, agriculture commodities, bullions, metals , debt instruments and currencies. Derivatives are traded between two parties on exchange and all the post trade processes like clearing & settlement are carried out by exchanges.

If we talk about India, derivatives on all the asset types are traded actively. Indian derivatives are largely traded in following underlying assets.

1. Indices

2. Stock Futures & Options

3. Currency Derivatives

4. Commodity Derivatives

In the Indian stock market , the derivatives segment holds the largest part of the volume. Even institutions like FIIs, DIIs & HNIs use this segment to hedge their existing portfolios to minimise the risk. Option trading is also very popular among Indian proprietary traders.

Commodities

If we look at the products we use around us the raw materials that are used in the manufacturing of these products are commodities. In the commodities market, these are raw materials with an intrinsic value. These are unrefined resources that are used in the process of making refined goods so that consumers can use these finished products in their daily life. Sometimes the quality of commodities may vary, but they are uniform based on some criteria in any class of a particular commodity. In the commodities market, there are two basic types. They are broadly categorised as hard commodities and soft commodities. Hard commodities are those that are used for inputs to produce other goods and services. These may constitute minerals and metals. Soft commodities are used for the consumption and these include agro commodities like cotton, wheat, rice etc.

1. Bullion & Metals

2. Energy

3. Agri Commodities

We can provide our clients trading access for all major commodities.

Currency Derivatives

Financial agreements between the buyer and seller that involve the exchange of two currencies at a certain rate and at a future date are known as currency derivatives. For those looking to lower their risk associated with foreign exchange rates, trading currency derivatives is appropriate. In India, currency derivatives offer a wide range of opportunities for different parties. Utilise this chance to minimise your risk associated with foreign exchange rates by engaging in currency trading in India.