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Constraints

NOT NULL CONSTRAINT -    Ensures that a column cannot have a null value. DEFAULT CONSTRAINT -    Provides a default value for a column when none is specified  UNIQUE CONSTRAINT -   Ensures that all values in columns are different  CHECK CONSTRAINT -   Makes sure that all values in a column satisfy certain criteria  PRIMARY KEY CONSTRAINT -   Used to uniquely identify a row in the table  FOREIGN KEY CONSTRAINT -   Used to ensure referential integrity of the data  Primary Key - is used uniquely to identify each row in a table . It can consist of one or more columns on a table . When Multiple columns are used on a table it is called composite key.  Foreign Key - Foreign key is a column or columns that references a column most often primary key of another table . The purpose of foreign key is to maintain referential integrity of the data. Pg admin  Data base - training - right click on training - query click  Always add semi colen to run the query  Int - integer  varchar - variable charact
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Derivatives

A derivative is a contract between 2 or more parties whose value is based on agreed upon underlying financial asset , index or security. Derivatives are used to mitigate risk.

Factors driving growth of derivative markets 

1. Volatility in asset prices 

2. Increased economic integration 

3. Sophistication in communication skills 

Participants in Derivative market 

On the basis of constitution of participants 

1.Mutual Funds- Earlier mutual funds were not allowed by SEBI because the risk is there , there were retail investors who cannot bear loss . But  now there is so many sophistication facilities , now the loss chances is very very minimum .

2. Corporate 

3. Banks / FI 

4. High net worth individuals 

Advantages of Derivative Market 

1. Price risk management - Risk + hedging 

2. Diversification - enter in different fields 

3. Risk management tools - To mitigate the risk.

4. High financial leverage - just a contract with less amount to the investors having less money .(Just margin)

5. Price Discovery - there are certain factors like expectation , the fair market value . we can discover the future prices.

Disadvantages of Derivative Market 

1. Increased Bankruptcy - no knowledge about the market

2. Counter party risk - opposite party will not pay

3. Requires expertise - without expertise , money can lose

4. Restrictive regulations - volume is very high , then SEBI will ban for a few days for that particular stock.

5. Volatile 

6. Speculative 

NSE certification , NISM certification go for the derivatives certification .


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