Ad
related to: why derivatives are used todayderivativepath.com has been visited by 10K+ users in the past month
- Hedge Accounting
Easily create hedge instruments.
Auto-generate inception packages.
- Company News
Read On Derivative Path Wins
Waters Ranking Award And More.
- Resources
Read On Markets Digest PCE Data
Ahead Of Thanksgiving And More.
- Loan Management
Check the Loan Management Software
Solution. Know More.
- Hedge Accounting
Search results
Results from the WOW.Com Content Network
Most derivatives are price guarantees. But some are based on an event or performance of an act rather than a price. Agriculture, natural gas, electricity and oil businesses use derivatives to mitigate risk from adverse weather. [5] [6] Derivatives can be used to protect lenders against the risk of borrowers defaulting on an obligation. [7]
The derivatives market is the financial market for derivatives - financial instruments like futures contracts or options - which are derived from other forms of assets. The market can be divided into two, that for exchange-traded derivatives and that for over-the-counter derivatives. The legal nature of these products is very different, as well ...
A foreign exchange hedge (also called a FOREX hedge) is a method used by companies to eliminate or "hedge" their foreign exchange risk resulting from transactions in foreign currencies (see foreign exchange derivative). This is done using either the cash flow hedge or the fair value method.
A cross-currency swap's (XCS's) effective description is a derivative contract, agreed between two counterparties, which specifies the nature of an exchange of payments benchmarked against two interest rate indexes denominated in two different currencies. It also specifies an initial exchange of notional currency in each different currency and ...
The booming U.S. stock market will help keep the dollar expensive as global investors pour money into America, a foreign exchange strategist said. But the politics of any trade deals that the ...
This is why, at some point in their history, most world currencies in circulation today had a value fixed to a specific quantity of a recognized standard like silver and gold. Medieval and later During the 15th century, the Medici family were required to open banks at foreign locations in order to exchange currencies to act on behalf of textile ...
A foreign exchange derivative is a financial derivative whose payoff depends on the foreign exchange rates of two (or more) currencies. These instruments are commonly used for currency speculation and arbitrage or for hedging foreign exchange risk .
As OTC instruments, interest rate swaps (IRSs) can be customised in a number of ways and can be structured to meet the specific needs of the counterparties. For example: payment dates could be irregular, the notional of the swap could be amortized over time, reset dates (or fixing dates) of the floating rate could be irregular, mandatory break clauses may be inserted into the contract, etc.
Ad
related to: why derivatives are used todayderivativepath.com has been visited by 10K+ users in the past month