Understanding the Indian Stock Market: A Beginner’s Guide
Introduction The Indian stock market is a rapidly growing financial market that has attracted the attention of many investors looking to diversify their portfolios and make a profit.…
FINANCE CRACKER
Decoding Finance
Category Knowledge
Netting
Meaning Netting is an internal risk hedging tool to manage the forex risk. A company may have multiple forex exposure from different operations in the form of receivable…
Money Market Hedge
Meaning of Money Market Hedge Money market hedge is one of the tools of risk management related to foreign exchange risk. Under this, forex risk can be hedged…
Foreign Exchange Risk and 3 Types
Understanding of Foreign Exchange Risk Foreign Exchange Risk means risk of losses that an organization or government may incur due to fluctuation in exchange rate. Foreign exchange risk…
Foreign Exchange Exposure
Meaning The term foreign exchange exposure is relevant for the companies involved in import or export of goods or services, or having transactions denominated in foreign currency. If…
Currency Future
Meaning Under Currency future contract two parties are agreed to buy or sell an underlying currency at future date on agreed upon price. This derivative contract provides both…
Currency Call Option
Meaning Currency Call Option is a contract between two parties under which option buyer gets the right to buy the underlying currency within a specified period. For buying…
Currency Put Option
Meaning Currency Put Option is a contract between two parties under which option buyer gets the right to sell the underlying currency at pre-determined price (Strike Price) within…
Currency Option
Meaning of Currency Option Currency Option is a contract between two parties that provides the buyer the right to buy or sell specified quantity of underlying currency on…
Extension of Forward Contract
Extension or Rollover of Forward Contract Some times may be due to some unforeseen reasons, payment or receipt of foreign currency is required to be deferred. In such…