Derivatives are financial contracts whose value/price is dependent on the behaviour of the price of one or more basic underlying assets (often simply known as the underlying). These contracts are legally binding agreements, made on the trading screen of stock exchanges, to buy or sell an asset in future. The asset can be a share, index, interest rate, bond, rupee dollar exchange rate, sugar, crude oil, soybean, cotton, coffee and what have you.

Continuing with the capital market reforms, the Securities and Exchange Board of India (SEBI) allowed trading in equities-based derivatives on stock exchanges in June 2000. Accordingly National Stock Exchange and Bombay Stock Exchange introduced trading in futures and options based on Nifty, BSE Sensex and 31 prominent stocks.

Stock based futures were launched on November 2, 2001 and ever since volumes in the derivatives segment have grown by leaps and bounds. Today average daily volume in the derivatives segment is about Rs.2,500 crores with the highest volume of Rs.4,172 crore recorded on February 28, 2003. Indeed the derivatives market is fast emerging as an important business segment for both investors and brokers.

To keep up with the sophistication level of their customers and competitors, derivatives traders need analytics that not only cover a comprehensive set of models, but also can be easily customized and flexibly combined. Furthermore, by using analytics accepted and recognized throughout the industry, trading managers can more easily satisfy the fair accounting requirements they must meet.

Agarwal Commodities has compelling solutions for derivatives traders. No matter what your level of experience, you can rely on us to assist you in making the right decisions in futures commodity trading. Our goal is to ensure you reap maximum benefits through the highest quality of service, timely market information and in-depth research.