Trade Nivesh Derivative Contract

In this way , profits in the derivative contract may offset losses in the underlying asset .
The primary purpose behind derivative contracts is the transfer of risk without the need to trade the underlying . In addition , the derivatives market plays a role in information discovery and market efficiency . Despite the benefits , there are criticisms that derivatives are misused and add to market volatility . They aim at derivative markets to secure their investment portfolio against the market risk and price movements . They do this by assuming an opposite position in the derivatives market .