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derivatives

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(Querist)
16 October 2008 can any one say me the difference between shares and derivatives
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
16 October 2008 Shares are traded on delivery basis or in the derivatives market. Derivatives is a product of share market which has two sub products 'Future' and 'Options'. In both future and options segment trades are executed at a price for a future date and these are settled without deliveries either by entering into a reverse trade or automatically at the expiry date.
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