Vol. 4, Issue 3, Part A (2018)

Abstract
The derivative market has become multi-trillion dollar over the years. Derivatives are financial commitments indexed in some capacity to changes in the value of underlying assets. The bulk of the derivatives trading are internationally linked to currencies and interest rates, other derivatives are linked to equity or equity indices. The product of derivatives existence in Indian stock market is for minimizing price risk. The issue of the impact of derivatives trading on stock market volatility has received considerable attention at present scenario in India.