Derivatives - swaps, futures, options.

DERIVATIVES - A REPORT SUBMITTED BY SHAILAJA KATYAL LLIM SUMMER TRAINEE CSV-CUSTODY AND CLEARING CONTENTS Introduction Derivatives History and Development of Derivatives Market Recent Trends Performance Kinds of risks involved in Derivatives Derivative Products and End Users Pros and Cons of Derivatives Derivative in India: A Chronology L.C. Gupta Committee Report J.R. Verma Committee Report Forwards, Futures, Options & Swaps Forward Futures Options Swaps Futures - A Procedure Note A Futures Contract Index …

…deposit funds in what is called a margin account. Suppose the broker has decided to call the buyer to deposit an initial margin of Rs.6000 when the contract is entered into. After the initial margin is deposited; a change in the price of the futures contract would change the percentage relationship between the margin & the contract value. At the end of the each trading day the margin account is adjusted to reflect the investor