FRM Blogs
Bid-Ask Spread – Complete Understanding
Bid-Ask Spread
The BID price is the price at which the market is willing to buy from us. When we talk about buying and selling Equities...
Settlement of Futures Contract – Complete Understanding
Settlement of Futures Contract
Derivatives settlement is a business process where the contract is executed on a pre-decided date and at...
Options Clearing Corporation – Role and Importance
Roles of Options Clearing Corporation
Options are the financial instruments that derive their value from the underlying instrument. Und...
What is Basis Risk – Full Understanding
What is Basis Risk
Basis Risk is a type of systematic risk that arises where perfect hedging is not possible. When there is a variation...
What is Cross Hedge and its Impact?
What is Cross Hedge?
When the characteristics of the underlying position match perfectly with that of futures contract specifications, ...
What is Forward Rate Agreement (FRA)?
What is Forward Rate Agreement (FRA)?
A Forward Rate Agreement or FRA refers to foreign exchange or interest rate hedging strategy. It ...
COVID-19 Impact on Financial Services
COVID-19 Impact on Financial Services
The pandemic has pushed the global economy into a recession and causing a halt to economic growth...
What is Market Segmentation Theory
Market Segmentation Theory
Bond markets provide bonds with short, medium, and long term maturity to engage investors with respective ...
Dollar Roll Transaction
What is Dollar Roll Transaction?
A dollar roll is the same as the reverse repurchase agreement (buying and selling securities at a hig...
COVID-19 effects on Banking Industry
COVID-19 effects on Banking Industry
The pandemic has pushed the global economy into a recession, and a halt to economic growth. Amid ...
