Event
Workshop
Topic
Introduction to Derivatives
Speaker Name
Mr. Sasikumar, MCX - Regional Head, Trichy.
Date
02nd May, 2018

 

Gnanam School of Business, Thanjavur organised a “PRACTICAL WORKSHOP”on 02/05/2018. Mr.Sasikumar,Regional Manager,Goodwill Commodities & Mr.Anbarasan,Branch Manager,Goodwill Commodities were invited as the Chief Guest and the program commenced in the presence of the CEO of Gnanam School of  Business Dr.S.P.S Arul Doss and Dr.Anand,the faculty coordinator of the event. The main objective of the program was to enrich the practical knowledge of the students on “Trading techniques”’

Mr.Sasikumar emphasized that trading is a financial contract that derives its value from an underlying asset. The buyer agrees to purchase the asset on a specific date at a specific price. Derivatives are often used for commodities, such as oil, gasoline or gold. Another asset class is currencies, often the U.S. dollar. There are derivatives based on stocks or bonds. Still others use interest rates, such as the yield on the 10-year Treasury note.

He also explained in detail about the various trading techniques and commodity markets.They allow companies to forecast their earnings more accurately. That predictability boosts stock prices. Businesses then need less cash on hand to cover emergencies. They can reinvest more into their business. Trading is done by hedge funds and other investors to gain more leverage.That’s because derivatives only require a small down payment, called “paying on margin” . Many derivatives contracts are offset, or liquidated, by another derivative before coming to term. That means these traders don't worry about having enough money to pay off the derivative if the market goes against them. If they win, they cash in.

He summarized that the most common type of tade is a swap. It is an agreement to exchange one asset (or debt) for a similar one. The purpose is to lower risk for both parties. Most of them are either currency swaps or interest rate swaps.

Thus the students of Gnanam School of Business were enhanced and upgraded from the knowledge gained from the speech givenby Mr.Sasikumar & Mr.Anbarasan.

 
 

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Gnanam School of Business
Mary's Nagar,
Trichy - Thanjavur Expressway,
Sengipatti - 613402,
Thanjavur District.