Spot and Forward Interest Rate
What do we Mean by Spot and Forward Interest Rates?Spot interest rate is the yield to maturity of a bond with “x” number of… Read Article
Forwards
Forward Interest Rate
What do we mean by a Forward Interest Rate?Forward interest rate is the interest rate that an investor can fix at the present day… Read Article
Spot Interest Rate
What do we Mean by the Spot Interest Rate?Spot interest rate is the yield to maturity on any zero-coupon bond with an “x” number… Read Article
Hedging Strategies: Using Forwards, Futures and Options
Investors use hedging strategies to lower their risk exposure. These are strategies to handle the given situation in the market in case things do… Read Article
Types of Derivatives Instruments – All You Need to Know
A derivative is a financial instrument that derives its value from an underlying asset. The underlying security could be shares, bonds, currencies, commodities, and… Read Article
Types of Forward Contracts – All You Need to Know
A forward contract is a type of derivative instrument. This is an agreement between two investing parties wherein the parties agree to buy or… Read Article
Futures Contracts – Meaning, Features, Pros, Cons, and More
Futures Contracts are a legal agreement that allows buyers and sellers to buy and sell an underlying asset at some date in the future… Read Article
Non-deliverable forward (NDF)
A non-deliverable forward contract is a type of forward contract used to hedge foreign exchange risk. Some of the other foreign exchange risk hedging… Read Article
Forward Rate Agreement – Meaning, Features, Example, and More
Forward Rate Agreement or FRA’s are very similar to the forward contracts. In FRA, one user agrees to lend or borrow to another a… Read Article
Forwards vs Futures Differences
Forwards and Futures are a type of derivatives contract which derives their value from the performance of underlying assets. Both types of contracts allow… Read Article
Types of Exchange Rates
What are Exchange Rates?“Exchange rates is an amount of the domestic currency you will have to pay to obtain a unit of a foreign… Read Article