Derivatives

Derivatives

Last Updated on 2023-12-12 by Admin

 

Securities whose prices are derived from the prices of other securities. Useful for hedging and speculation.

 

Types

  • Forwards
  • Futures
  • Options
  • Swaps

 

Traded

  • Exchange
  • Over-The-Counter (OTC)
    1. Cleared OTC Derivatives
    2. Uncleared OTC Derivatives

 


 

Reasons

  • Access
  • Arbitrage
  • Asset Allocation
  • Contingency
  • Hedging
  • Leverage
  • Speculation
  • Taxation

 


 

Forwards

  • Derivative Contract
  • Over-The-Counter (OTC)
  • Customised Contract

 


 

Futures

  • Derivative Contract
  • Exchange Traded
  • Standardised Contract

 


 

Options

 

 

 


 

Swaps

  • Derivative Contract
  • Swap of Interest Rates between two parties

 

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Admin