Paper Contents
Abstract
Derivatives have shifted the speculative trading to a more controlled environment. This paper analyses the perception of investors towards derivative trading. The study was conducted in Hyderabad to get an insight into the minds of investors to analyze their awareness and perception on investment in derivative instruments. The emergence of the market for derivative product, most notably Forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of Fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking in asset prices, As Instruments of risk Management; these generally do not influence the fluctuations in the underlying asset prices. However, by locking in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk averse investors. A sound risk management system is integral to an efficient clearing and settlement system. NSE introduced for the first time in India, risk containment measures that were common internationally but were absent from the Indian securities markets. This paper deals with investor perception in derivatives investment in Hyderabad city and concern issue and challenges.
Copyright
Copyright © 2023 Dr Ch.Munendar Reddy. This is an open access article distributed under the Creative Commons Attribution License.
