SlideShare una empresa de Scribd logo
1 de 12
Descargar para leer sin conexión
Financial Derivatives in India,[object Object],Karthikeyan Jawahar, CFPCM,[object Object],Director – Research & Consulting,[object Object],Finerva Financial Solutions Pvt Ltd,[object Object]
Derivatives Fundamentals,[object Object],Origin in Forward Contract,[object Object],Related to Agricultural Commodities,[object Object],To Preserve Profits and Marketability (Hedging),[object Object],Over the Counter Market,[object Object],One-on-one Deals (Not Transferable),[object Object],Predominantly between a bank and its client,[object Object],Exchange Tradable,[object Object],Futures,[object Object],Options,[object Object]
How Derivatives?,[object Object],Options Payoff Charts,[object Object],Profit / Loss Line,[object Object],Target (Exercise) Price,[object Object],Expectation – Share Price will GO DOWN,[object Object],Expectation – Share Price will GO UP,[object Object]
Dominant types,[object Object],Forwards,[object Object],Futures,[object Object],Options,[object Object],Swaps,[object Object],All the others are combinations or modifications of the above.,[object Object]
Types of Players,[object Object],Hedgers,[object Object],Arbitrageurs,[object Object],Speculators,[object Object]
Indian Scene,[object Object],Was one of the World’s Largest Futures Market -  Cotton Futures Trade,[object Object],Shifted predominantly to OTC post independence,[object Object],Market Trading started from June 2000 with Index Futures,[object Object],Index Option June 2001,[object Object],Individual Securities Options from July 2001,[object Object],Individual Stock Futures from July 2001,[object Object],Commodity Futures started June 2000 – regular addition of commodities even today,[object Object],Forex (US$) Futures Started October 2008,[object Object]
Market Dynamics,[object Object],Lots sizes ranging value of in Rs.2.5 to Rs.4 lakhs,[object Object],Dominant market is NSE,[object Object],Rapid Growth in Volumes,[object Object],Daily Volumes of Rs.68,000 Cr,[object Object],Only Rs.18,000 Cr in cash segment,[object Object],Dominated by Index Derivatives,[object Object]
Derivatives in india
Is This For ME?,[object Object],Market Dominated by Speculators,[object Object],Highly Leveraged,[object Object],Invest only the margin (Premium)Eg. Rs.300 x 50 = Rs.15,000/- only for a CE-DEC 4800 (S&P CNX Nifty),[object Object],Contract value = Rs.4700 x 50 = Rs.235,000,[object Object],If Nifty Goes to 5000, profit is Rs.300 x 50 = Rs.15,000/- => 100% returns,[object Object],If Nifty even stays at 4700, loss is Rs.300 x 50 = Rs.15,000/-. => Entire Capital Lost,[object Object],Zero Sum Game,[object Object],80% of Day-traders Lose Money in USA,[object Object],Las Vegas Effect,[object Object]
Zero Sum Game,[object Object],Stock market is a Non-Zero Sum Game.,[object Object],Everyone can make profits. One person’s loss is not another’s profit.,[object Object],Derivatives is a Zero Sum Game.,[object Object],The profit made is another person’s loss.,[object Object],My premium lands up with the market maker,[object Object],My profit is paid by the market maker,[object Object],The market makers are large financial corporations or the stock market itself.,[object Object],Failed Market makers are – Barrings Bank, Societe Generale, Lehman Brothers, many more banks & hedge funds in the USA.,[object Object]
Questions and Sharings,[object Object],Thank You,[object Object],Mail for further queries to ,[object Object],Karthikeyan Jawahar,[object Object],karthiK@finerva.com,[object Object]
Derivatives in india

Más contenido relacionado

La actualidad más candente

Derivatives Basics
Derivatives BasicsDerivatives Basics
Derivatives Basicsflame2011
 
A study of derivatives ppt
A study of derivatives  pptA study of derivatives  ppt
A study of derivatives pptAjay Pandey
 
Flevy.com - Financial Derivatives - Forwards/Futures/Options
Flevy.com - Financial Derivatives - Forwards/Futures/OptionsFlevy.com - Financial Derivatives - Forwards/Futures/Options
Flevy.com - Financial Derivatives - Forwards/Futures/OptionsDavid Tracy
 
Introdaction of derivative market
Introdaction of derivative marketIntrodaction of derivative market
Introdaction of derivative marketAnkur Sarswat
 
Financial derivatives ppt
Financial derivatives pptFinancial derivatives ppt
Financial derivatives pptVaishnaviSavant
 
Derivatives ppt @ mab finance
Derivatives ppt @ mab financeDerivatives ppt @ mab finance
Derivatives ppt @ mab financeBabasab Patil
 
What is the Meaning of Financial Derivatives
What is the Meaning of Financial DerivativesWhat is the Meaning of Financial Derivatives
What is the Meaning of Financial DerivativesDhanashri Academy
 
48898102 derivative-market-in-india-ppt
48898102 derivative-market-in-india-ppt48898102 derivative-market-in-india-ppt
48898102 derivative-market-in-india-pptaskforbijan
 
Speculating with Currency Options
Speculating with Currency OptionsSpeculating with Currency Options
Speculating with Currency Optionslinnett
 
Derivatives
DerivativesDerivatives
Derivativesbbajaria
 
VBA & ADO MS Access – Part 2
VBA & ADO  MS Access – Part 2VBA & ADO  MS Access – Part 2
VBA & ADO MS Access – Part 2Khader Shaik
 
Topic 8 Managing Risk
Topic 8 Managing RiskTopic 8 Managing Risk
Topic 8 Managing Riskshengvn
 
Options contract on indian derivative market
Options contract on indian derivative marketOptions contract on indian derivative market
Options contract on indian derivative marketRitesh Sethi
 

La actualidad más candente (20)

Derivatives Basics
Derivatives BasicsDerivatives Basics
Derivatives Basics
 
Derivatives
DerivativesDerivatives
Derivatives
 
A study of derivatives ppt
A study of derivatives  pptA study of derivatives  ppt
A study of derivatives ppt
 
Derivatives
DerivativesDerivatives
Derivatives
 
Derivatives in India
Derivatives in IndiaDerivatives in India
Derivatives in India
 
Derivatives
DerivativesDerivatives
Derivatives
 
Flevy.com - Financial Derivatives - Forwards/Futures/Options
Flevy.com - Financial Derivatives - Forwards/Futures/OptionsFlevy.com - Financial Derivatives - Forwards/Futures/Options
Flevy.com - Financial Derivatives - Forwards/Futures/Options
 
Introdaction of derivative market
Introdaction of derivative marketIntrodaction of derivative market
Introdaction of derivative market
 
Derivatives
DerivativesDerivatives
Derivatives
 
Financial derivatives ppt
Financial derivatives pptFinancial derivatives ppt
Financial derivatives ppt
 
Derivatives ppt @ mab finance
Derivatives ppt @ mab financeDerivatives ppt @ mab finance
Derivatives ppt @ mab finance
 
What is the Meaning of Financial Derivatives
What is the Meaning of Financial DerivativesWhat is the Meaning of Financial Derivatives
What is the Meaning of Financial Derivatives
 
48898102 derivative-market-in-india-ppt
48898102 derivative-market-in-india-ppt48898102 derivative-market-in-india-ppt
48898102 derivative-market-in-india-ppt
 
Hedging
HedgingHedging
Hedging
 
Speculating with Currency Options
Speculating with Currency OptionsSpeculating with Currency Options
Speculating with Currency Options
 
Derivatives
DerivativesDerivatives
Derivatives
 
Options contract
Options contractOptions contract
Options contract
 
VBA & ADO MS Access – Part 2
VBA & ADO  MS Access – Part 2VBA & ADO  MS Access – Part 2
VBA & ADO MS Access – Part 2
 
Topic 8 Managing Risk
Topic 8 Managing RiskTopic 8 Managing Risk
Topic 8 Managing Risk
 
Options contract on indian derivative market
Options contract on indian derivative marketOptions contract on indian derivative market
Options contract on indian derivative market
 

Destacado (10)

Group 4(iii)
Group 4(iii)Group 4(iii)
Group 4(iii)
 
Unit v
Unit vUnit v
Unit v
 
Derivative in india final
Derivative in india finalDerivative in india final
Derivative in india final
 
Commercial papers
Commercial papersCommercial papers
Commercial papers
 
Commercial papers
Commercial papersCommercial papers
Commercial papers
 
Derivatives market in india
Derivatives market in indiaDerivatives market in india
Derivatives market in india
 
Commercial paper
Commercial paperCommercial paper
Commercial paper
 
Derivatives - Classroom Presentation
Derivatives - Classroom PresentationDerivatives - Classroom Presentation
Derivatives - Classroom Presentation
 
Derivatives market
Derivatives marketDerivatives market
Derivatives market
 
Financial derivatives ppt
Financial derivatives pptFinancial derivatives ppt
Financial derivatives ppt
 

Similar a Derivatives in india

Currency Market in India
Currency Market in IndiaCurrency Market in India
Currency Market in IndiaAnand Kumar
 
Basics of Stock Markets
Basics of Stock MarketsBasics of Stock Markets
Basics of Stock Marketstnd150
 
Forex primers
Forex primersForex primers
Forex primerspsaintwho
 
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...Rajib Ranjan Borah
 
foreign-exchange-market.pdf
foreign-exchange-market.pdfforeign-exchange-market.pdf
foreign-exchange-market.pdfrekhabawa2
 
Fxc Presentation
Fxc PresentationFxc Presentation
Fxc Presentationnsuit14
 
Discover the secret to currency profits today!
Discover the secret to currency profits today!Discover the secret to currency profits today!
Discover the secret to currency profits today!Vunani Private Clients
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Marketrajeevj
 
Introduction Of The Foreign Exchange Market
Introduction Of The Foreign Exchange MarketIntroduction Of The Foreign Exchange Market
Introduction Of The Foreign Exchange MarketAmy Miller
 
Fx 101 lecture by Marshall Chang
Fx 101 lecture by Marshall ChangFx 101 lecture by Marshall Chang
Fx 101 lecture by Marshall ChangCameron Fen
 

Similar a Derivatives in india (20)

Currency Market in India
Currency Market in IndiaCurrency Market in India
Currency Market in India
 
Basics of Stock Markets
Basics of Stock MarketsBasics of Stock Markets
Basics of Stock Markets
 
DERIVATIVES - an overview
DERIVATIVES - an overviewDERIVATIVES - an overview
DERIVATIVES - an overview
 
Chapter iii
Chapter iiiChapter iii
Chapter iii
 
Derivative
DerivativeDerivative
Derivative
 
Forex primers
Forex primersForex primers
Forex primers
 
Forex primers
Forex primersForex primers
Forex primers
 
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...
Sebi proposals on "Regulations for Algorithmic Trading" and how they might af...
 
foreign-exchange-market.pdf
foreign-exchange-market.pdfforeign-exchange-market.pdf
foreign-exchange-market.pdf
 
Hybrid Pitch Np
Hybrid Pitch NpHybrid Pitch Np
Hybrid Pitch Np
 
Forex market ppt
Forex market pptForex market ppt
Forex market ppt
 
MB & FS 1.pptx
MB & FS 1.pptxMB & FS 1.pptx
MB & FS 1.pptx
 
Fxc Presentation
Fxc PresentationFxc Presentation
Fxc Presentation
 
Financial Services
Financial ServicesFinancial Services
Financial Services
 
Discover the secret to currency profits today!
Discover the secret to currency profits today!Discover the secret to currency profits today!
Discover the secret to currency profits today!
 
Foreign Exchange Market
Foreign Exchange MarketForeign Exchange Market
Foreign Exchange Market
 
Forex
ForexForex
Forex
 
Introduction Of The Foreign Exchange Market
Introduction Of The Foreign Exchange MarketIntroduction Of The Foreign Exchange Market
Introduction Of The Foreign Exchange Market
 
1. what is forex
1. what is forex1. what is forex
1. what is forex
 
Fx 101 lecture by Marshall Chang
Fx 101 lecture by Marshall ChangFx 101 lecture by Marshall Chang
Fx 101 lecture by Marshall Chang
 

Más de financialeducation (19)

Me and my_finance
Me and my_financeMe and my_finance
Me and my_finance
 
Life insurance selling
Life insurance sellingLife insurance selling
Life insurance selling
 
Investment planning
Investment planningInvestment planning
Investment planning
 
Investment management
Investment managementInvestment management
Investment management
 
Intro to personal_finance_wealth
Intro to personal_finance_wealthIntro to personal_finance_wealth
Intro to personal_finance_wealth
 
Inflation demystified
Inflation demystifiedInflation demystified
Inflation demystified
 
Indirect taxes valuation_for_excise
Indirect taxes valuation_for_exciseIndirect taxes valuation_for_excise
Indirect taxes valuation_for_excise
 
House to rent_or_ buy
House to rent_or_ buyHouse to rent_or_ buy
House to rent_or_ buy
 
Fundamentals of personal_finance
Fundamentals of personal_financeFundamentals of personal_finance
Fundamentals of personal_finance
 
Finerva template
Finerva templateFinerva template
Finerva template
 
Financial planning executive_secretaries
Financial planning executive_secretariesFinancial planning executive_secretaries
Financial planning executive_secretaries
 
Financial markets
Financial marketsFinancial markets
Financial markets
 
Donts of personal_finance
Donts of personal_financeDonts of personal_finance
Donts of personal_finance
 
Yeah yeah personal_finance
Yeah yeah personal_financeYeah yeah personal_finance
Yeah yeah personal_finance
 
Wealth creation strategies
Wealth creation strategiesWealth creation strategies
Wealth creation strategies
 
Wealth creation
Wealth creationWealth creation
Wealth creation
 
Union budget 2009-10
Union budget 2009-10Union budget 2009-10
Union budget 2009-10
 
Personal finance young_adults
Personal finance young_adultsPersonal finance young_adults
Personal finance young_adults
 
Myths personal finance
Myths personal financeMyths personal finance
Myths personal finance
 

Derivatives in india

  • 1.
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 9.
  • 10.
  • 11.