Category: BANKING AND FINANCIAL MARKET

Meaning : A forward contract is a simple customised contract between to parties to buy or sell an asset at a certain time in future for a certain price agreed today. Forward contracts are over-the-counter traded contracts, means they are not traded in stock exchange. these contracts are generally private contracts between two financial institution or between a financial institution Read More …

A Derivative is a contract whose value is determined from an another asset,  known as underlying. an underlying could be anything which has its own value and can be traded in the market. An underlying could be a share(equity or preference), a stock market(Nifty or SENSEX), a commodity(rice,wheat etc.), a currency  (Rupee,Dollar etc.) or even whether. Value of a derivative Read More …