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Abstract

Any business activity entails varying degrees of uncertainty with regard to its operations. This is recognized as risk associated in conducting the business.


In the past three decades financial markets have witnessed the emergence of many financial instruments, which facilitate financial risk management. The most popular amongst these products are financial futures and options. India is one of the most successful developing countries in terms of a vibrant market for exchange-traded derivatives. After the credit crisis took its toll in 2009, the global futures and options industry returned to rapid growth in 2010 after leveling off in 2009. Derivatives are becoming increasingly important in world markets as a tool for risk management. A comparative study has been made between various stock exchanges of the world with respect to trading volume of all the four exchange traded financial derivatives. The study has been made between various Derivative Instruments and also between various Stock Exchanges in the world where financial derivatives are traded. The results shows growth of some derivatives very fast than others, Suggestions have been made to support the growth of Financial Derivatives in India and World.

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