• Krishna Priya Vishnubhatla

Derivative is the financial tool, with a value that is reliant upon or derived from an underlying asset or group of assets. It is a contract between two or more parties. Normally, most of the common underlying assets are like – stock, bonds, commodities, currencies, interest rates, and market indexes. Derivatives can traded over the counter on an exchange OTC traded derivatives, generally, have a greater possibility of counter party risk. Traded between to private parties and are unregulated. Derivative can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. A main objective of the study is to understand the concept of the financial derivatives such as forwards, futures, options and swaps. To find out the profit/loss position of the option holder. This study does not take any Nifty Index features and options and International markets into the consideration. The study was confined to conceptual understanding of derivative market in India. In this study we gathered data from different sources this is News channels, Newspapers, different websites, stock market news, business news, etc. all the above information how the derivative market will work and which parties will include in the derivatives.

Speculate, movement, trade, underlying, stock, bonds, currency

"A Study on the Concept of Derivatives", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.8, Issue 6, page no.b114-b118, June-2021, Available :http://www.jetir.org/papers/JETIR2106159.pdf

"A Study on the Concept of Derivatives", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.8, Issue 6, page no. ppb114-b118, June-2021, Available at : http://www.jetir.org/papers/JETIR2106159.pdf