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Derivatives and listed derivatives

Former Member
0 Kudos

Hi,

Please give me some inputs on Process of Derivatives and Listed Derivatives

with regards

reddy

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
0 Kudos

Dear Ramana,

Derivatives are financial hedging instruments used to hedge financial or physical Risk. Financial Risk includes Currency or Interest rate Risk and Physical Risk is Commodity or any underlying price risk.

Derivative Instruments such as Forwards, Futures, Options, Swaps (CCS or IRS) etc are used to hedge Risk on an Underlying. Underlying can be anything like currency, equity, commodity etc.

The process of trading in these instruments is same as for other products with little differences. Book a transaction, Settle, release, post and analyze. Since these are hedging instruments, Hedge management can also be implemented to effectively analyze the hedging strategies.

Compliance with hedge accounting rule for derivatives is also to achieved and can be done easily with SAP hedge management.

Regards,

Manish