Thursday, February 2, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Commodities

What are the ‘underlying’ differences in equity, commodity derivatives

MtR by MtR
June 26, 2021
in Commodities
0


Derivatives are financial instruments where the value is based on an underlying asset. That is, in derivatives market, financial instruments including futures and options, derive its price or value from an asset known as underlying. This asset can be a stock or a commodity such as gold, silver or oil. The asset can also be currencies or index. One of the differences between equities and commodities derivatives market, is this underlying. In the case of stock market, the equity futures and options have stocks as underlying and they represent the expected price of the stocks traded i.e., a measure of where the stock price might be heading to. While in case of commodities market, commodity futures and options have commodities as underlying and they represent the expected price of respective commodities traded such as gold, silver, and other metals. While the equity spot market is actively traded on a daily basis, it is not so with the commodities spot market in India.

Equity index futures and options contracts are cash settled while stock futures and options are physically settled. This is similar in commodities market as well. Commodity futures/options contracts require the trader to take physical delivery of goods, while commodities index futures/options are cash settled. For instance, MCX, one of the commodities exchanges in the country, had launched bullion index futures contract – MCX Bulldex last year. The futures contract tracks MCX iCOMDEX Bullion Index (which was launched in December 2019).

Send your queries to derivatives@thehindu.co.in



Source link

Related articles

Record outflows from commodity ETPs obscure long-term demand

August 10, 2022

Pacific Trader: B2Gold bucks the commodity slump

August 9, 2022

Related Posts

Record outflows from commodity ETPs obscure long-term demand

by MtR
August 10, 2022
0

Latest news on ETFsVisit our ETF Hub to find out more and to explore our in-depth data and comparison toolsInvestors...

Pacific Trader: B2Gold bucks the commodity slump

by MtR
August 9, 2022
0

Credit: B2Gold Corp. Hauling ore at B2Gold's Otjikoto Mine in Namibia And unlike its peers, the Vancouver company pays a...

Ford raises prices of electric F-150 pickup amid high commodity costs

by MtR
August 9, 2022
0

The all-electric Ford F-150 Lightning pickup truck is unveiled at the company's world headquarters in Dearborn, Michigan, U.S., May 19,...

Commodity Market: Gold price surge marginally

by MtR
August 9, 2022
0

Mumbai: Price of gold edged higher marginally in the commodity market. Sovereign gold is trading at Rs 38,240, higher by...

Japan Hands over Emergency Medicines and Commodities for Pregnant Women and Adolescent Girls though the Project “PROMISES” under the partnership with UNFPA – Sri Lanka

by MtR
August 9, 2022
0

On 8 August, Ambassador of Japan to Sri Lanka, H. E. Mr. MIZUKOSHI Hideaki handed over essential pharmaceuticals for women...

Load More
  • Trending
  • Comments
  • Latest

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021

Tips for checking smoke alarms during daylight saving time

March 12, 2022

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter