Product Description
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.
Types of Derivative Trading
Futures
Financial contracts between a buyer and seller that obligates the buyer to purchase an asset at a predetermined price on a date in the future. These contracts are traded on stock exchanges.
Options
Financial contracts between a buyer and seller that provides the buyer with the right to purchase or sell the asset at a predetermined price but not the obligation. The call option offers the right to purchase a fixed quantity of assets at a fixed price, while the put option does the same for the sale of the assets. The purchase of any type of option involves a premium and is a high-risk investment.
About Derivative Instruments
- Value derived from multiple underlying assets
- High risk and high liquidity of the derivative market
- Leverage instrument for risk management
- Arbitrage trading for market efficiency
- Transferable risk to option seller
Benefits of Eureka Derivative Trading
Well-researched recommendations for a good risk-reward ratio
Smooth purchase and sale of any type of derivative
Thorough risk management with market analysis
Simplified risk transfer
End-to-end client support
