Tag Archives: futures
Asian options- Benefits and Risks
Asian options-Benefits and Risks
An Asian option is an option type where the payoff depends on the average price of the underlying ass...
European Options
European Options
When an investor has the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date, it is...
Forward Commitments
Forward Commitments
Forward commitments are agreements between two parties to transact in the future. They specify the commodity to be ...
Cheapest to Deliver
Cheapest to Deliver
Cheapest to deliver is a method that is used to estimate which is the least expensive future contract for a seller ...
Currency Futures
Currency Futures
Currency futures contracts are the future agreement at which the trader buys or sells a specific quantity of currency ...
Stock Index Futures
Stock Index Futures
The stock market index is composed of a basket of stocks that indicates the generic price fluctuations and volumes ...
Contango & Backwardation
Contango & Backwardation
INTRODUCTION
The forward curve is a plot of forward rates against time to maturity. Contango and backward...
What is Stack & Roll Hedge?
What is Stack & Roll Hedge?
Hedging is a risk management technique used to reduce investment risks by taking the opposite position ...
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...
How are Futures Physically Settled in India?
How are Futures Physically Settled in India?
Derivatives contracts are either cash-based or physically distributed on the expiry date ...