Forward, Futures and Options Market

Forward Market A forward market is an over-the-counter marketplace that sets the price of a financial instrument or asset for future delivery. Forward markets are …

Alternative Strategies of Marketable Securities, Choice of Securities

Alternative Strategies of Marketable Securities Marketable securities are investments that can easily be bought, sold or traded on public exchanges. The high liquidity of marketable …

Concept of Risk and Return (Including Capital Asset Pricing Model)

Concept of Risk and Return (Including Capital Asset Pricing Model)

Swaps: Concept Characteristics and Types

In finance, a SWAP is a derivative in which two counterparties agree to exchange one stream of cash flow against another stream. These streams are called the …

Guidelines of SEBI and RBI

With the amendment in the definition of ”securities” under SC(R)A (to include derivative contracts in the definition of securities), derivatives trading takes place under the …

Concepts and Characteristics, Types of Financial Future Contracts- Stock Future, Index Future, Currency Future, Interest Rate Future and Commodity Future

Financial future contracts are contracts on fixed income securities, equity indexes and currencies. The investor can effectively improve the risk-return feature of his portfolio with …

Types of Financial Forward Contracts

Forward contracts: Forwards are the oldest of all the derivatives. Forwards are contracts to buy or sell an asset on or before a future date at …

Difference between Exchange Traded and OTC Derivatives

Many financial markets around the world, such as stock markets, do their trading through exchange. However, forex trading does not operate on an exchange basis, …

Participants in Derivative Markets: Hedgers, Speculators, and Arbitrageurs

Participants in Derivative Markets: Hedgers, Speculators, and Arbitrageurs, Key differences between Hedgers, Speculators, and Arbitrageurs

Movements in Foreign Exchange Rates and impact on trade and investment flows

Currency fluctuations are a natural outcome of the floating exchange rate system that is the norm for most major economies. The exchange rate of one …

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