Title: ‘Financial Derivative-An effective hedging tool’

Author’s Name:
First Author: Partha Chatterjee

Designation: Assistant Professor

Current Status: Assistant Professor of MBA (Finance) in Dr.B.C.Roy
Engineering College, Durgapur.

Mobile Number: 9732079909

Email address: partha.bschool@gmail.com

Second Author: Juhi Chatterjee

Current Status: Post Graduate M.Com

Mobile Number: 8145358652

Email address: juhi.xaviers@gmail.com

‘Financial Derivative-An effective hedging tool’

Abstract

Human beings are always active to generate new ideas and innovations. These are
the hallmark of progress at every stage of development. The financial market is no
exception of it. Maximization of return and minimization of risk are the main
drivers for generating new ideas and innovations. Derivatives are one of the very
important segments of the financial market and are a very old concept. A lot of
innovations are going on for developing financial products and its practical
application. The purpose of research obviously to increase return and reducing risk
through different hedging techniques.

Derivative market has been very popular all over the world. India is no exception
of that. Indian financial markets have been on the ascension and catching up with
global standards in financial markets. The advent of screen based trading,
dematerialization, rolling settlement have put our markets on par with international
markets. To match with international financial market derivative trading was
introduced in our country from June 2000. Over the time period different futures
and options were introduced. This market presents a tremendous opportunity for
individual investors. The present paper is an attempt to study the evolution of
Indian Derivative Market, the growth of derivatives market in India and world
Derivative scenario vis-a-vis Indian Derivative Market so that the individual
investor is educated and equipped to become a dominant player in the market.