Volume : I, Issue : IX, June - 2012

An Insight into Derivative Markets: Indian Perspective

Dr. C. Shobha, Dr. T. Hanumantha Raya

Abstract :

Financial markets are, by nature, extremely volatile and hence the risk factor is major concern for financial agents. Often, in financial markets, volatility is measured and reported (statistically) as annualized value of standard deviation of natural logarithms of daily returns generated over a fixed number of days, on rolling basis. As uncertainty about future goes down volatility is expected to go down, however as mentioned as earlier as response/ reaction time becomes shorter, volatility is expected to increase. However in the equiliium, a state of final turbulence could prevail. To reduce the risk, the concept of derivatives comes into picture. Last decade was one of the eventful decades in the international markets This study attempts to discuss the genesis of derivatives trading by tracing its historical developments, types of traded derivatives products, regulation and policy developments, trend and growth, future prospects and challenges of derivative market in India.  

Keywords :

Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. C.Shobha, Dr. T. Hanumantha raya An Insight into Derivative Markets: Indian Perspective Indian Journal of Applied Research, Vol.I, Issue.IX June 2012

Number of Downloads : 1215

References :