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MBA/BBA

ONLINE TRADING IN DERIVATIVES

0 sold27 viewsUpdated 6 years ago
Derivatives are products whose values are derived from one of more basic variables called bases. These bases can be underlying assets such as foreign currency, stock or commodity, bases or reference rates such as LIBOR or US Treasury Rate etc. For example, an Indian exporter in anticipation of the receipt of dollar-denominated export proceeds may wish to sell dollars at a future date to eliminate the risk of exchange rate volatility by the date. Such transactions are called derivatives, with the spot price of dollar being the underlying asset.

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