Disadvantages of Derivatives

Hello guys, Here are some important benefits.This are very easy to understand and it is related to market and how to enhance its productivity.

1. Price Discovery

2. Risk Management

3. They Improve Market Efficiency for the Underlying Asset

4. Derivatives Also Help Reduce Market Transaction Costs
 
DISADVANTAGES OF DERIVATIVES


CREDIT RISK

MARKET RISK

LEGAL RISK

Hey sunanda, thanks for letting us know about the disadvantages of derivatives. But just as every coin has two sides in the same way derivatives have also got some advantages and disadvantages. That is why i am sharing here a document which will tell you the pros and cons of derivatives in market.
 

Attachments

  • pros and cons of Derivatives.pdf
    198.5 KB · Views: 3

rosemarry2

MP Guru
DISADVANTAGES OF DERIVATIVES


CREDIT RISK

MARKET RISK

LEGAL RISK

Hey friend,

Here I am sharing Study on Demystifying Financial Derivatives, so please download and check it.
 

Attachments

  • Study on Demystifying Financial Derivatives.pdf
    320.4 KB · Views: 3
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