future trading strategy

Jun 28th, 2015
Studypool Tutor
Academy of Art University
Price: $25 USD

Tutor description

We might expects any transaction that settles today to be a cash transaction and anything settling from tomorrow onward to be a Forward. Unfortunately, this is not always the case and depending on the underlying financial asset, a cash transaction can range from today for a money market transaction to several weeks, or longer in some securities markets. A forward transaction does not commence until the settlement day passes the cash settlement date. Eg.In foreign exchange market, a Forward is a transaction that settles after two business days. In the Indian Equity market minimum Forward we can have is 8 days.

Word Count: 7938
Showing Page: 1/134
DERIVATIVES:Concept , Structure& ValuationContents of thepresentationWhat are derivatives?Why are derivatives required?Types of DerivativesHistory of derivative marketsPlayers in the derivative marketsHow derivative markets are organized?Valuation of DerivativesTypes of marketsCash:Tom:Price is decided today whereas the transaction willPayment is made as soon as the deal is struckbe settled on the next business daySpot:Forward/future: Price is decided today whereasPrice is decided today whereas the transaction issettled two (or More) business days laterthe transaction takes place on a future date (few months)Forward Vs Cash TransactionsWe might expects any transaction that settles todayto be a cash transaction and anything settlingfrom tomorrow onward to be a Forward.Unfortunately, this is not always the case anddepending on the underlying financial asset, a cashtransaction can range from today for a moneymarket transaction to several weeks, or longer insome securities markets.A forward transaction does not commence until thesettlement day passes the cash settlement date.Eg.In foreign exchange market, a Forward is atransaction that settles after two business days. Inthe Indian Equity market minimum Forward we canhave is 8 days.Derivative : What is it?Derivative is a financial instrument whosevalue is derived from an underlying assetssuch as

Review from student

Studypool Student
" Excellent work as always thanks so much "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1819 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors