WHAT TO KNOW ABOUT DERIVATIVES SECURITIES 'Derivatives securi | LiveTrade LTD Official Channel

WHAT TO KNOW ABOUT DERIVATIVES SECURITIES

"Derivatives securities" are usually mentioned in lots of news about Vietnam’s stock market as one of the tools that help investors make good profits. So what do you know about derivatives securities?

Let's find out with us in the article below!
____

What are derivatives securities?

Derivative securities are defined as financial instruments in the form of a contract, in which their values depend on the price movement of the underlying asset.

The underlying assets of derivatives securities are currently divided into 2 main categories: commodities and financial instruments.

How many popular types of derivatives securities?

Currently, derivatives securities are commonly deployed under 4 types:

Forward contract is a legal agreement between two parties to buy and sell an asset at a certain time in the future. The asset price is determined at present.

Futures contract is a legal contract between a buyer and a seller for a future transaction at a predetermined price. The trading process usually takes place at the Stock Exchange.

Option contract is a contract that allows investors to buy and sell an underlying asset at a specified price. The holder of this contract will have the right, but not the obligation, to buy or sell the underlying asset.

Swap contract is a contract with an agreement between two parties to a transaction on the swap of cash flows or financial terms arising from a financial instrument in the future.

The futures contract has very similar trading principles to those of stock trading on the underlying market and its product types are also simply designed so it is easily accessible to investors.

If you are looking to expand your portfolio by diversifying types of securities investments, derivatives securities will be a useful instrument that can help grow income and limit risks during the investment process.

Follow #LiveTrade official channels for more new posts!

--------------------------------------------------------------------------
Bridging the World Financial Markets
Website | Twitter | Telegram Channel | Telegram Chat
Facebook | Facebook Community | Medium | Youtube | Linkedln

#LiveTradeApp #derivativessecurities