Tag Archives: frm
What is Netting?
What is netting?
A method of reducing credit, settlement, and other risks of financial contracts by aggregating (combining) two or m...
What is Settlement Price?
What is Settlement Price?
What is Settlement?
Settlement is the final exchange of money and securities on the settlement date between ...
Role of Brokers in Financial Markets
Role of Brokers in Financial Markets
Definition
A broker could be an individual or a firm that acts as an intermediary between two par...
How the VIX Index Works
How the VIX Index Works
VIX or Volatility Index, also known as “Fear Gauge” or “Fear Index”, globally recognized and followed by a var...
Traditional Investment vs Alternative Investment Markets
Traditional Investment vs Alternative Investment Markets
It is rightly said, " don't keep all egg in on basket". this phrase is many ti...
Contango & Backwardation
Contango & Backwardation
INTRODUCTION
The forward curve is a plot of forward rates against time to maturity. Contango and backward...
Protective Put
Protective Put
What are Protective puts?
A protective put is a risk-management strategy using contract options employed by investors t...
HOW ASSET-BACKED CREDIT-LINKED NOTES WORKS
HOW DOES ASSET-BACKED CREDIT-LINKED NOTES (CLN) WORKS
INTRODUCTION
Credit derivatives are categorized into funded and unfunded.
I...
Primary vs Secondary Capital Market
Primary vs Secondary Capital Market
Introduction:
Capital market refers to any part of the financial system that raises capital from b...
Spot Rate and Forward Rate
SPOT RATE:
The spot rate is the price quoted on a commodity, security, or currency for immediate settlement. Also called the "spot pric...