Derivative

Topics: Foreign exchange market, Currency, United States dollar Pages: 8 (1907 words) Published: March 4, 2014

CONTENT
I. Introduction
1. The concept of derivatives market
2. The situation of the stock market and forex market in Vietnam II. Influences of derivatives market as well as on Securities Market Forex market at Vietnam 1. Stock Market
a. Growth stock market
b. Debt leverage
2. Forex market
a. Increase the value of domestic currency
b. Exchange rate fluctuations
III. Conclusion.

I. Introduction
1. Derivative Market
The derivatives market is the financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets. The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different as well as the way they are traded, though many market participants are active in both. 2. The situation of the stock market and forex market in Vietnam

The money market in the first 9 months of 2013 have continued to improve positive liquidity of the banking system is strengthened and is abundant in comparison to the previous period due to increased deposit rate is always achieved high growth than the growth rate of the system thong12 credit , interest rates on inter-bank market , so despite some point surge but has generally maintained a stable interest rate is always low ( 3-4 % ) in the majority of the time the first 9 months of the year ; lending rate on deposit facility is granted on the market as well as raising the rate from the secondary market on the total assets of the organization decreasing credit shows positive signal when the level of risk in most of the activities of credit institutions and the entire system has been dramatically reduced ; On foreign exchange markets , exchange rates from year to now quite stable and only a few small fluctuations seasonal and temporary psychological . According to the Financial Supervisory Commission national, foreign exchange market and the exchange rate is likely to continue to maintain stability in the final months of 2013 due to supply and demand in the foreign exchange market the last months of the year remained stable, foreign exchange reserves continued to rise fairly.

In the first 6 months of the year, despite the difficult economy, Vietnam's stock market still has considerable development, creating growth expectations in the last months. VN - Index is an index of 10 has the fastest growth rate in the world, 1.97 % and 18.83 % this is in turn an increase of VN - Index and HNX - Index in 2013. VN - Index ended the last trading session of 2013 at 504.63 points, the HNX - Index closed 2013 at 67.84 points The rise of the index was made ​​Vietnam become one of the 10 countries with the world's most powerful recovery. We can say objectively necessary in order to affect complete market continues to promote the role as long -term capital mobilization channel for the economy

II. Influences of derivatives market on Securities Market as well as Forex market at Vietnam 1. Securities Market
a. Growth stock market
On the development of the securities market, in addition to trading activities of ordinary securities such as stocks, bonds, securities investment fund also has securities traded derivatives. A derivative security is including warrants, futures contracts and option contracts. The types of derivative securities unlike conventional stock, we do not claim ownership or creditor rights between holders of the issuer , which only confirms the right to purchase common stock of an issuer for the owner ( the case warrants and warrants ) or confirm the rights and obligations between the two parties traded contract ( in case the option and futures contracts ) . The derivatives market helps to be more active and stimulating investment activities of investors in securities. Derivatives are financial instruments derived from stocks and closely related to the original stock. The...
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