Results for tag: "Equity Derivatives"

The Equity Derivatives market is a subset of the financial derivatives market, which is used to manage risk and gain exposure to the equity markets. Equity derivatives are financial instruments whose value is derived from an underlying asset, such as a stock, index, or exchange rate. These derivatives can be used to hedge against market volatility, speculate on price movements, or gain exposure to a particular asset without having to purchase it outright. Equity derivatives are typically traded over-the-counter (OTC) or on exchanges, and can be customized to meet the needs of the investor. Common types of equity derivatives include options, futures, swaps, and contracts for difference (CFDs). Options give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price. Futures are contracts that obligate the buyer to purchase an asset at a predetermined price at a future date. Swaps are agreements between two parties to exchange cash flows based on the performance of an underlying asset. CFDs are agreements between two parties to exchange the difference in the value of an underlying asset at the start and end of the contract. Some of the major players in the Equity Derivatives market include Goldman Sachs, Morgan Stanley, JPMorgan Chase, Citigroup, and UBS. Show Less Read more