Cancellation of Forward Contract
Concept of Cancellation of Forward Contract If due to some uncertain events or reasons, if forward contract can not be executed then it is cancelled. There are so…
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Early Delivery | Currency Forward Contract
Meaning of Early Delivery You know very well that currency forward contracts are entered to exchange foreign currency on a specified date in future. But it might happen…
Currency Forward Contract
Meaning of Currency Forward Contract Currency Forward Contract is an instrument that can be used for hedging the exposure in foreign currencies. Under this contract customer enter into…
International Arbitrage
Meaning of International Arbitrage International Arbitrage is the process of selling and buying foreign securities and ADRs simultaneously to take advantage of imperfect pricing in different international markets. …
Futures Margin and their 3 Types in Easy Language
What is Futures Margin? Futures margin is a precondition to enter into future contract. Under future contract two parties are agree to sell and buy an underlying asset…
Future Contract Meaning, Best Features and 2 Settlement Mode
Meaning of Future Contract Future contract is a derivative contract under which two parties are agreed to buy and sell an underlying asset at future date on agreed…
Triangular Arbitrage or Three Point Arbitrage
What is Triangular Arbitrage? Triangular Arbitrage is the result of mis-match of exchange rate of three currencies. Under this mechanism arbitrageur takes advantage of discrepancy among three different…
Two Point Arbitrage
Meaning of Two Point Arbitrage Buying a currency in one market and selling it at higher price in another geographically different market is called two-point arbitrage. Normally exchange…
COVERED INTEREST ARBITRAGE
MEANING OF COVERED INTEREST ARBITRAGE Under Covered Interest Arbitrage (CIA) arbitrageur takes the advantage of interest rate differential between two countries by hedging himself under forward contract to…
What is Mutual Fund NAV?
MEANING Net Asset Value (NAV) is the value of a unit of a mutual fund. It is a price at which an investor can buy or redeem the…