Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Priyanka S. Patil

Abstract: The research paper is about the comparative study on derivative and equity market. The major study of the research paper is to compare trading in derivative with equity cash segment. The methodology of the study here is to analyze the scrips in Equity & Derivative market and analyze the performance based on its return, risk reward ratio and other factors.

The aim of the research paper is to analyze the investment opportunities available for the investors & study the returns & risk involved in various investment opportunities. The basic rule of investment is high risk, high return, but this is applicable only when one invests for a long term purpose in Equity market. While in derivative there is a high risk, high return in the short term, because derivative contract is for short time period of 1, 2 and 3 months only. So, this research paper aims in understanding which avenue is more beneficial for investors to trade in, either equity or derivate market considering the risk reward ratio and the returns earned.

Keywords: Equity, Derivative, Investment, Risk, Return