Derivatives are financial contracts or agreements that are based on external assets such as stocks, commodities, indices, currencies, and interest rates. The market speculates on the price of an asset in the future, and investment is made according to these market predictions. Derivative investments allow investors to pay an initial margin to a stockbroker instead of the full amount, which the buyer is obligated to pay only at a fixed date in the future. Profits are then derived from these instruments efficiently and consistently. Though Derivative Trading is a high-risk investment option, it also has the potential for high returns. It is used for hedging and leveraging of risks caused by volatile price movements in the market.
Derivative Trading can go a long way in offsetting risk in an investment portfolio. Eureka Stock and Share Broking Services Ltd. helps you do just that with our top-notch advisory services and recommendations based on the suitability and goals of the investor. With us, you can know which derivatives are the best for your portfolio, trade using leverage, and have a front-row seat to wealth creation through derivatives.