reliancesmartmoney.com Equity Dealer Interview Questions and Answers

Derivatives are financial contracts that derive their value from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples include futures, options, and swaps.

• Derivatives can be traded on exchanges or over-the-counter.

• They can be used to manage risk or to take on additional risk for potential profit.

• Derivatives can be complex and require a thorough understanding before trading.

Revenue is generated through brokerage fees and commissions on trades executed for clients.

• Brokerage fees charged on every trade executed for clients

• Commissions earned on the volume of trades executed

• Additional revenue generated through value-added services like research and advisory

• Revenue can also be generated through cross-selling of other financial products

• Building a strong client base through networking and referr