Role of derivatives (Future & Options) in the Indian stock market

Authors

  • Shalini Aggarwal Associate Professor

Keywords:

Derivatives, Volatility, Unsystematic risk and Systematic risk

Abstract

Abstract

Volatility in the financial market is inevitable. Due to this volatility risk factor came into existence. In today’s era business faces two types of risk such as Unsystematic and Systematic risk. Volatility in the market comes under systematic risk which can be evaluated with the help of standard deviation. Increase or decrease in volatility in future depends upon market sentiments, emotions and other fundamental concepts of stocks in the market. One major issue arises how we can reduce the risk or mitigate systematic risk. Volatility cannot be mitigated through diversification, only through hedging or by using the right asset allocation strategy. The concept of derivatives came into existence which helps in hedging the risks while adding liquidity to the market.

This study attempts to learn the growth of derivatives market in regards to India context and types of traded derivatives products and challenges for derivative market in future. The data is collected from BSE and NSE website.

Additional Files

Published

2017-12-06

How to Cite

Aggarwal, S. (2017). Role of derivatives (Future & Options) in the Indian stock market. NOLEGEIN- Journal of Entrepreneurship Planning, Development and Management, 1(1), 11–15. Retrieved from https://mbajournals.in/index.php/JoEPDM/article/view/73

Issue

Vol. 1 No. 1 (2018): NOLEGEIN Journal of Entrepreneurship Planning, Development and Management

Section

Research Paper

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