Derivatives (เคกเฅเคฐเคฟเคตเฅเคเคฟเคตเฅเคธ) โ Hinglish (Short & Exam-Oriented)
Derivatives =
Aise financial contracts jinki value kisi dusre asset (Underlying Asset) ki value par depend karti hai.Simple Definition:
"
Derivative ki apni independent value nahi hoti. Iski value underlying asset ke price ke hisaab se badalti ya ghatati hai."Underlying Asset ho sakta hai:
โข Shares (Stocks) โข Bonds โข Gold, Silver
โข Crude Oil โข Currency (USD/INR)
โข Interest Rate โข Commodity
โข Market Index (e.g., NIFTY 50)
Example:
Agar Gold ka price โน1,00,000 se โน1,10,000 ho jata hai, to Gold derivative ki value bhi uske hisaab se change hogi.
Main Purpose:
โข Hedging =
Risk se bachnaโข Speculation =
Price movement se profit kamanaโข Arbitrage =
Price difference ka fayda uthana
Main Types of Derivatives:
1. Forward โ
Private agreement, customized, OTC.2. Futures โ
Standardized contract, exchange par trade hota hai.3. Options โ
Right milta hai, obligation nahi.4. Swaps โ
Cash flows ya interest rates exchange karna.Exam One-Liners:
โข Derivative = Value derived from an underlying asset.
โข Futures & Options (F&O) are the most commonly traded derivatives.
โข Derivatives are used for hedging, speculation, and arbitrage.
โข Exchange-traded derivatives are generally safer than OTC derivatives because of clearing mechanisms.
โข In India, equity derivatives are regulated by Securities and Exchange Board of India.
๐นDerivative = "Dependent Contract"
Yaad rakho:
Underlying Asset โ โ Derivative Value generally โ
Underlying Asset โ โ Derivative Value generally โ (contract type ke hisaab se profit/loss change ho sakta hai).
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Credit Derivatives โ Hinglish (Brief & Exam-Oriented)
Credit Derivatives =
Aise financial contracts jo credit risk (loan default ka risk) ko transfer karne ke liye use hote hain, bina actual loan ya bond ko beche.Simple Definition:
"
Credit Derivative ek contract hai jisme lender apna default ka risk kisi doosri party ko transfer kar deta hai."Example:
โข Bank A ne Company X ko โน100 crore ka loan diya.
โข Bank ko darr hai ki Company X loan repay nahi karegi.
โข Bank ek Credit Derivative contract kharid leta hai.
โข Agar Company X default karti hai, to contract bechne wali party Bank A ko compensation deti hai.
Purpose:
โข Credit risk transfer karna.
โข Bank ka risk kam karna.
โข Financial system me risk management.
Most Common Credit Derivative:
โข Credit Default Swap (CDS) โญ๏ธ (Exam Favourite)
Credit Default Swap (CDS):
โข Buyer โ Protection kharidta hai aur premium pay karta hai.
โข Seller โ Protection deta hai aur default hone par payment karta hai.
๐บEasy Trick:
CDS =
Insurance jaisa protection against loan/bond default.(Note: Technically insurance nahi hai, lekin samajhne ke liye insurance jaisa concept hai.)
Exam One-Liners:
โข Credit derivatives transfer credit risk, not ownership of the loan.
โข Most popular credit derivative = Credit Default Swap (CDS).
โข Used mainly by banks and financial institutions for risk management.
โข Credit derivatives help in hedging against default risk.
โข In India, credit derivatives are regulated by the Reserve Bank of India.
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1. Credit Default Swap (CDS)
CDS = Loan/Bond ke default hone se protection lene ka contract.
Easy Example:
Bank A ne Company X ko โน100 crore ka loan diya.
Bank ko lagta hai ki Company X default kar sakti hai.
Bank A, Bank B se CDS kharidta hai aur regular premium deta hai.
Agar Company X default karti hai, to Bank B Bank A ka loss compensate karega.
Remember:
Protection Buyer โ
Premium pay karta hai.Protection Seller โ
Default hone par compensation deta hai.Purpose:
โ๏ธ Credit risk transfer karna.
โ๏ธ Default se protection lena.
CDS = Default Insurance jaisa contract (technically insurance nahi hai).
2. Total Return Swap (TRS)
Simple Meaning:
TRS =
Kisi asset ka total return (interest/dividend + price increase/decrease) doosri party ko transfer karne ka contract.Easy Example:
Bank A ke paas โน100 crore ke bonds hain.
Bank A un bonds ko bechna nahi chahta.
Lekin un bonds ka profit/loss kisi aur ko transfer karna chahta hai.
Bank A aur Investor B ke beech TRS hota hai.
TRS me:
Investor B ko bond ka total return (interest + price gain/loss) milta hai.
Badle me Investor B Bank A ko fixed ya floating interest pay karta hai.
Purpose:
โ๏ธ Asset beche bina uska return transfer karna.
โ๏ธ Investment exposure lena.
Shortcut:
TRS = Total Return Transfer.
โค2
Sb hindi me likha hai daro mat, read karlo
โค2๐1๐ข1
Mast read krke like kr dena
Smjh toh aayega ki Haan padhne wale 0.1% hain
Smjh toh aayega ki Haan padhne wale 0.1% hain
How many Standalone Primary Pealers SPD are functioning in India? Currently?
Anonymous Quiz
28%
11
41%
7
26%
9
5%
18
How many NBFCs are in upper layer of the Scale based regulation framework ?
Anonymous Quiz
20%
10
37%
12
34%
15
6%
18
3%
17
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sports, deals, days and other miscellaneous toh exam time pe hi koi one shot dekhkar ya aisi infographics se padh lenge , toh jo main hai baar baar revise krne wala, vo sb hi bana rhe abhi๐๐.
๐ฅ6๐ฟ2๐ซก1
scheme toh daali hi hain jo jo main main aati hain news me
prelims ke baad ek baar firse infographics bana denge ya pdf, achhe se revise krne k liye
prelims ke baad ek baar firse infographics bana denge ya pdf, achhe se revise krne k liye
๐ฟ8๐ฅ6
Total number of Small Finance banks [SFBs] in INDIA?
Anonymous Quiz
12%
9
51%
11
22%
13
10%
15
5%
17
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26th and 27th members of the Indian Big Cat Alliance? Respectively.
Anonymous Quiz
7%
Bangladesh , Qatar
47%
Saudi Arabia , Bangladesh
22%
Qatar , Bangladesh
9%
France, Bangladesh
15%
Bangladesh , Saudi arabia
Pax silica launched in which year and how many countries have joined yet?
Anonymous Quiz
14%
2025 , 30
40%
2022, 35
28%
2025, 35
17%
2026, 38
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ALL the very best for new month of marathon. โก๏ธโก๏ธโก๏ธ
in just 3 days......
Countdown start ....
in just 3 days......
Countdown start ....
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Who is Ethipian PM ?
Anonymous Quiz
27%
Abiy Ahmed
32%
Abiy Rehman
23%
Aftab ahmed
18%
Juma Jumba ju๐คฃ๐คฃ
๐คฃ4โค1
bhai khatarnak log hain ๐คฃ๐คฃkya kya tick kar dete hain jo hai hi nahi
๐ป5
โยฐโข๐ฉ๐๐ฃ ๐ฃ๐ฎ๐๐- ๐๐ฎ๐ป๐ธ๐ถ๐ป๐ด ๐๐ฒ๐ฒ๐ ๐ฆ
Who is Ethipian PM ?
rehman baloch dhyan me rkhne se voi tick kar rhe log ๐คฃ
which layer of NBFC is known as Vacant layer and can be activated any time if needed?
Anonymous Quiz
43%
Top layer
24%
medium layer
14%
upper layer
18%
bottom layer
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