What are the different instruments available in the currency derivatives market in India?
Future and Options are commonly used currency instruments in Indian derivatives market. A future contract allows you to buy or sell an underlying asset at a present price for delivery on a future date.
Options are of two types - Call and Put. Call option gives a buyer the right but not the obligation to purchase an underlying asset at the specified strike price by paying a premium while Put gives the right but not the obligation to sell an underlying asset at a specified strike price by paying the premium.
Apart from Futures and Options, Currency Swaps and Currency Forwards are other derivatives instruments used in India.
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