International Journal of Financial Technology Perspective

International Journal of Financial Technology Perspective

Challenges and Necessity of Developing Financial Derivatives in the Financial Market of Iran

Author
PhD Student in Financial Engineering, Islamic Azad University, Science and Research Branch, Tehran, Iran
Abstract
The capital market is one of the important pillars of the economy in the country. Capital market participants are always looking for investment with minimal risk or its reduction and transfer. Risk reduction in investment and financial matters is done using risk management methods and turns financial risks in the real world into predictable and controllable risks. Derivatives, which are innovations of financial professionals, are one of the most important risk management tools and thus have played an important role in financial markets and are traded on relevant stock exchanges. This research assesses the general concept of derivatives, their history and types, as well as the advantages and disadvantages of derivatives; finally, the leading challenges and their necessity and importance in the Iranian financial market are discussed.
 
Keywords

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