Home  Journals  Finance and Credit  28(460) - 2011 July

The market of derivative securities: techniques of work with futures contracts and listed options

Available online: 21 July 2011

Subject Heading: Stock market

JEL Classification: 

Derivatives market plays an important role in the global financial economy. Terminal market is the center of many assets pricing, as well as the mechanism of hedging various financial risks. However, the formation of the derivatives market in Russia is not an ordinary process due to many problems. No doubt, the terminal market is extremely complex for na?ve players because of its numerous specific nuances and characteristics that need to be well known and taken into account when trading. In addition, many newcomers are doomed to failure from the very beginning because of the inability to assess properly the situation on the market of an actual and, therefore, make slips when opening positions. In this paper we propose an effective scheme of work with the derivative securities. The scheme allows a novice investors to orient correctly in a situation of instability and rapid price changes and, thus, properly apply the tools of the terminal market. It makes also possible not only compensate for losses on the spot market, but obtain and maximize profit from the use of derivatives instruments.

Keywords: terminal market, Futures Contract, option for the Futures Contract, hedging

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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