Derivative is known as instrument which is underlying asset that derives the value of final product. In a Financial world, derivative is an important as it allows to protect your portfolio from any underlying risk

Reason to Trade in Derivatives

Earn Higher Return on shares that you don’t want to sell:

Now you can earn money on share which are lying idle & actually you have bought it for a long term & you don’t have any intention to sell it. However, You can take advantage of those shares for the price fluctuations in short term. Derivatives markets allow you t do it & much better Option is derivatives market without actually selling you shares

Arbitrage Benefits

It is taking a benefit of two market prices i.e buying low in one market & selling high on the other market & take an advantage of price difference.


It allows you to hedge against the market risk & price fluctuations, it allow you to hedge yourself against the falling price of certain shares that you plan to purchase.

Transfer of Risk

It acts as a risk transfer instrument from the risk averse investors to the one who can bear risk. It allows you yo enhance safety & help the People to improve profits. There is a wide variety of products available and strategies that can be constructed, which help the investors to pass on their risk.

Looking to Invest in Derivative Market Instruments?

Connect with our FinClick Team Now