Derivatives are financial instruments whose value is derived from an underlying asset. The four main types of derivatives are forwards, futures, options, and swaps. Forwards and futures are contracts to buy or sell an asset at a future date, while options give the right but not obligation to buy or sell. Swaps involve exchanging cash flows of one party's financial instrument for those of another party. Derivatives are traded both over-the-counter and on exchanges, and provide economic benefits like risk management and market liquidity.
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
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Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Meaning of the Term “Foreign Exchange”, Exchange Market, Statutory basis of Foreign Exchange, Evolution of Exchange Control, Outline of Exchange Rate and Types, Import Export
India’s Forex Scenario: BOP crisis of 1990, LOERMS, Convertibility.
Introduction to International Monetary Developments: Gold standard, Bretton Woods’s system, Fixed Flexible Exchange Rate Systems, Euro market.
Introduction to Exchange Rate Mechanism: Spot- Forward Rate, Exchange Arithmetic. -- Deriving the Actual Exchange Rate: Forwards, Swaps, Futures and Options. Guarantees in Trade: Performance, Bid Bond etc.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. whose value is derived from the value of
another asset, which is known as
underlying asset.
• When the price of the underlying
changes, the value of the derivative also
changes.
• A derivative is not a product. It is a
contract that derives its value from
changes in the price of the underlying.
• The value of the gold futures contract is
3. derived from the value of the underlying
asset, which is gold.
Traders in the derivatives market.
• Hedger - A hedger faces the risk
associated with price movement of an
asset and who uses derivatives as
means of reducing risk.
• Speculator - A trader who enters the
futures market in pursuit of profit,
4. accepting risk in the endeavour.
• A r b i t r a g e u r - A p e r s o n w h o
simultaneously enters into transactions in
two or more markets to take advantage
of the discrepancies between prices in
the market.
⁃ Arbitrage involves making profits from
relative mis-pricing.
⁃ It also help to make markets liquid,
ensure accurate and uniform pricing, and
5. enhance price stability.
Types of Derivatives Market
• OTC
⁃ In over-the-counter market derivatives
are traded between two counter-parties
without going through an intermediary.
⁃ The contract is privately negotiated and
thus customised.
⁃ T h e s e m a r k e t s a r e g e n e r a l l y
6. unregulated.
• Exchange-Traded
⁃ The exchange acts as an intermediary
whenever a contract is negotiated
between two counter parties.
⁃ The trading is standardised and
regulated.
⁃ The KOSPI of South Korea is the world's
largest derivatives exchange (by the
7. number of transactions)
Economic benefits of derivatives
⁃ Reduces risk.
⁃ Enhances liquidity of the underlying
asset.
⁃ Lowers transaction cost.
⁃ Enhances the price discovery process.
⁃ Portfolio management.
⁃ Provides signals for market movements.
8. ⁃ Facilitates financial markets integration.
Types of derivatives
1. Forward
2. Futures
3. Options
4. Swaps
What are forward contracts?
⁃ A forward is a contract in which one
9. party commits to buy and the other party
commits to sell a specified quantity of an
agreed upon asset for a pre-determined
price at a specified date in the future.
⁃ It is a customised contract, in the sense
that the terms of the contract are agreed
upon by the individual parties.
⁃ Hence, it is traded at OTC.
Risks in forward contract
10. • Credit risk - Does the other party have
the means to pay?
• Operational risk - Will the other party
make delivery? Will the other party
accept delivery?
• Liquidity risk - In case either party wants
to opt out of the contract, how to find
another counter party?
What are Futures contract?
11. ⁃ A future is a standardised forward
contract.
⁃ It is traded on an organised exchange.
⁃ It is standardised in terms of - quantity,
price and date of delivery of the
underlying.
Types of futures contracts
⁃ Stock futures trading
⁃ Commodity futures trading
12. ⁃ Index futures trading
Closing a futures position
⁃ Most futures contracts are not held till
expiry, but closed before that.
⁃ If held till expiry, they are generally
settled by delivery (2%-3%).
⁃ By closing a futures contract before
expiry, the net difference is settled
between traders, without physical
13. delivery of the underlying.
Terminology
⁃ Contract size - The amount of the asset
that has to be delivered under one
contract. All futures are sold in multiple of
lots which is decided by the exchange
board.
⁃ Contract cycle - The period for which a
contract trades. The futures on the NSE
14. have one (near) month, two (next) month
and three (far) month expiry cycles.
⁃ Expiry date - Usually last thursday of
each month or previous day if thursday is
a public holiday.
⁃ Strike price - The agreed price of the deal
is called the strike price.
⁃ Cost of Carry -Difference between strike
price and current price.
15. Margins
⁃ A margin is an amount of a money that
must be deposited with the clearing
house by both buyers and sellers in a
margin account in order to open a futures
contract.
⁃ It ensures performance of the terms of
contract.
⁃ It aims to minimise the risk of default by
either counterparty.
16. Types of margins
• Initial margin - Deposit that a trader must
make before trading any futures. Usually,
10% of the contract.
• Maintenance margin - When a margin
reaches a minimum maintenance level,
the trader is required to bring the margin
back to its initial level. The maintenance
margin is generally about 75% of the
initial margin.
17. • Variation margin - Additional margin
required to bring an account up to the
required level.
• Margin call - If amount in the margin A/C
falls below the maintenance level, a
margin call is made to fill the gap.
Marking to Market
⁃ This is a practice of periodically adjusting
the margin account by adding or
18. subtracting funds based on changes in
market value to reflect the investor's gain
or loss.
⁃ This leads to changes in margin amount
daily.
⁃ This ensures that there are no defaults
by the parties.
What are options
Contracts that give the holder the option to
19. sell/buy specified quantity of underlying at a
particular price on or before the specified
time period.
The word "option" means that the holder
has the right but not the obligation to buy/
sell underlying asset.
Types of option
• Options are of two types - Call and Put.
• Call option give the buyer the right but
20. not the obligation to buy a given quantity
of the underlying asset, at a given price
on or before a particular date by paying a
premium.
• Put option gives the buyer the right, but
not the obligation to sell a given quantity
of the underlying asset at a given price
on or before a particular date by paying a
premium.
• The other two types of option are -
21. European and American options.
• European style options can be exercised
only on the maturity of the options,
known as expiry date.
• American style option can be exercised
at any time prior to the expiration date.
Features of options
⁃ A fixed maturity date on which they
expire.
22. ⁃ The price at which option is exercised is
called exercise price of an option.
⁃ The person who writes the option and is
the seller is referred to as "option writer".
⁃ The person who holds the option and is
the buyer is called "option holder".
⁃ The premium is the price paid for the
option by the buyer to the seller.
⁃ A clearing house is interposed between
the writer and the buyer which
23. guarantees performance of the contract.
What are swaps?
⁃ In a swap a counter parties agree to
enter into a contractual agreement
wherein they agree to exchange cash
flows at regular intervals.
⁃ Most swaps are traded over the counter.
⁃ Some are traded on futures exchange
market.
24. Types of Swaps
There are two main types of swaps-
⁃ Plain vanilla fixed or floating swaps or
simply interest rate swaps.
⁃ Fixed currency swaps or simply currency
swaps.
What is an Interest rate swap?
⁃ A company agrees to pay a pre-
determined fixed interest rate on a
25. notional principal for a fixed number of
years.
⁃ In return, to receives interest at a floating
rate on the same notional principal for
the same period of time.
⁃ The principal is not exchanged. Hence, it
is called a notional amount.
Floating Interest rate
⁃ LIBOR - London Interbank offered rate.
26. ⁃ Its an average interest rate estimated by
leading banks in London.
⁃ Its the primary benchmark for short term
interest rates around the world.
⁃ Similarly, there is MIBOR i.e. Mumbai
Interbank Offered rate.
⁃ It is calculated by the NSE as a weighted
average of lending rates of a group of
banks.
27. What is a Currency Swap
⁃ It is a swap that includes exchange of
principal and interest in one currency for
the same in another currency.
⁃ It is considered to be a foreign exchange
transaction.
⁃ It is not required by law to be shown in
balance sheet.
⁃ The principal may be exchanged either at
the beginning or at the end of the tenure.
28. ⁃ However, if it is exchanged at the end of
the life of the swap, then the principal
value may be very different.
⁃ It is generally used to hedge against
exchange rate fluctuations.