1. What Are Exchange-Traded Derivatives (ETDs)? Exchange-Traded Derivatives (ETDs) are standardized financial contracts that are bought and sold on a regulated exchange like the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), or Chicago Mercantile Exchange (CME). These derivatives are used for hedging risk or speculating on price movements of stocks, commodities, currencies, or interest…
1. What Are OTC Derivatives? Over-the-Counter (OTC) derivatives are customized financial contracts that are traded directly between two parties, rather than on an exchange. These contracts allow businesses and financial institutions to tailor the terms to meet their specific risk management needs. Unlike Exchange-Traded Derivatives (ETDs), which are standardized and traded on regulated exchanges, OTC…
U.S. President Donald Trump’s recent announcement of a 25% tariff on steel and 10% on aluminium imports has sent shockwaves through global markets. While India’s direct exports to the U.S. are limited, the ripple effects could disrupt the Indian metal industry in unexpected ways. Here’s a look at what’s at stake for India—explained in…
Introduction: Why Currency Risk Matters In today’s interconnected global economy, Indian companies that engage in international trade often face a hidden challenge: currency risk. This risk arises when companies receive payments or make payments in foreign currencies. Fluctuations in exchange rates can lead to unexpected losses or reduced profits. So, how can Indian businesses protect…
Derivatives are generally classified into contingent claims and forward commitments: Contingent Claims: These are derivatives whose payoffs are dependent on the occurrence of a specific event. Examples include options and credit default swaps (CDS). Call Option Contract (B): This is a contingent claim because its payoff depends on whether the underlying asset’s price exceeds the…
बॉन्ड कंवेक्षिटी, मनी कंवेक्षिटी और ड्यूरेशन को आसान भाषा में समझें जब भी कोई इन्वेस्टर या फाइनेंस प्रोफेशनल बॉन्ड (Bond) में निवेश करता है, तो उसे यह समझना जरूरी होता है कि बॉन्ड की कीमत (Price) पर ब्याज दर (Interest Rate) के बदलने का क्या असर पड़ेगा। इसके लिए तीन मुख्य कांसेप्ट बहुत जरूरी हैं:…
Exams are often associated with immense pressure and stress. However, with the right approach, you can prepare effectively while maintaining a calm and focused mindset. The key is to manage stress efficiently and cover all topics conceptually with proper time management. Understanding the Root Cause of Exam Stress Exam stress typically arises from: Lack of…
India is home to some of the most challenging academic and professional courses, each demanding dedication, perseverance, and a strategic approach. Whether you’re aspiring to be a Chartered Accountant, a doctor, an engineer, a lawyer, or an architect, success in these fields requires meticulous planning and relentless effort. Here’s how you can navigate through and…
“इंसान अपने अतीत को कभी भुला नहीं सकता, क्योंकि बीते हुए लम्हे उसकी यादों में बस जाते हैं। कई बार, न चाहते हुए भी वे लम्हे उसे परेशान कर देते हैं, मगर यही ज़िंदगी की खूबसूरती है—यह हमें बार-बार अपने होने या न होने पर सोचने पर मजबूर करती है। लेकिन सच्चाई यह है कि…
Yield Measures on Bank Certificates of Deposit Suppose an investor is comparing the following two money market instruments. Which offers the higher expected rate of return, assuming that credit risks are the same? A 90-day commercial paper (CP) issued by Bright Wheel Automotive Corporation (BRWA), quoted at a discount rate of 0.100% for…