Tag Archives: frmlevel1
Implied Volatility – How Traders use it
What is Implied Volatility (IV)?
The option premium is made up of two basic components I.e. Intrinsic value and time value. Intrinsic v...
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, ...
Investment Banking – Full Understanding
Introduction to Investment Banking
Investment Banks: Investment banking is a special segment of banking operation that helps individual...
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 ...
What are Delivery versus Payment Contracts
Delivery versus Payment Contract:
Delivery versus Payment contracts deals with the settlement of securities. The concept sets forth th...
What is Market Segmentation Theory
Market Segmentation Theory
Bond markets provide bonds with short, medium, and long term maturity to engage investors with respective ...