Types of futures contracts slideshare

Goals of Chapter 2 Details of trading futures contracts Underlying asset (標的物), account requirement and default risk (違約風險) Types of orders Regulation,  It covers various contracts like forwarding exchange contracts for currencies, commodities, etc. Futures. Futures (or a Futures Contract) is a  May 24, 2017 As in both the two types of contract the delivery of the asset takes place at a predetermined time in future, these are commonly misconstrued by 

Initial margin is the equity required to initiate a futures position. This is a type of performance bond. The maximum exposure is not limited to the amount of the initial  Forwards and futures. These are financial contracts that obligate the contracts' buyers to purchase an asset at a pre-agreed price on a specified future date. Both  Feb 5, 2020 However, there are many types of futures contracts available for trading including : Commodity futures such as in crude oil, natural gas, corn, and  Jul 10, 2019 There are two kinds of forward-contract participants: hedgers and speculators. Hedgers do not usually seek a profit but rather seek to stabilize the  A forward contract is an agreement between two parties to buy or sell an asset ( which can be of any kind) at a pre-agreed future point in time at a specified price. A  (See formula) But the actual price of futures contract also depends on the Definition: A contra fund is defined by its against-the-wind kind of investing style. Goals of Chapter 2 Details of trading futures contracts Underlying asset (標的物), account requirement and default risk (違約風險) Types of orders Regulation, 

Forwards and futures. These are financial contracts that obligate the contracts' buyers to purchase an asset at a pre-agreed price on a specified future date. Both 

A futures contract is an agreement to buy (if you are long) or sell (if you are short) something in the future, at an agreed upon price (the futures price). Futures exist on financial assets (debt instruments, currencies, stock indexes), and real assets (gold, crude oil, wheat, cattle, cotton, etc.) Depending on the type of underlying asset, there are different types of futures contract available for trading. They are – Individual stock futures. Stock index futures. Commodity futures. Currency futures. Interest rate futures. INDIVIDUAL STOCK FUTURES. Individual stock futures are the simplest of all derivative instruments. Future Contracts Definition | Types Financial Future Contracts:- Financial future contracts are contracts on fixed income securities, equity indexes and currencies. The investor can effectively improve the risk-return feature of his portfolio with the help of these financial future contracts. Four Types of Derivative contracts. Futures & Forward contract. Futures are standardized contracts and they are traded on the exchange. On the other hand, Forward contract is an agreement between two parties and it is traded over-the-counter (OTC). Type 2: Futures Contracts. A futures contract is very similar to a forwards contract. The similarity lies in the fact that futures contracts also mandate the sale of commodity at a future data but at a price which is decided in the present. So, these are the 4 basic types of derivatives. Modern derivative contracts include countless

Apr 3, 2019 Each contract is custom designed and hence is unique in terms of contract size, expiration date, and the asset type, quality etc. A contract has 

A futures contract is an agreement to buy (if you are long) or sell (if you are short) something in the future, at an agreed upon price (the futures price). Futures exist on financial assets (debt instruments, currencies, stock indexes), and real assets (gold, crude oil, wheat, cattle, cotton, etc.) Depending on the type of underlying asset, there are different types of futures contract available for trading. They are – Individual stock futures. Stock index futures. Commodity futures. Currency futures. Interest rate futures. INDIVIDUAL STOCK FUTURES. Individual stock futures are the simplest of all derivative instruments. Future Contracts Definition | Types Financial Future Contracts:- Financial future contracts are contracts on fixed income securities, equity indexes and currencies. The investor can effectively improve the risk-return feature of his portfolio with the help of these financial future contracts. Four Types of Derivative contracts. Futures & Forward contract. Futures are standardized contracts and they are traded on the exchange. On the other hand, Forward contract is an agreement between two parties and it is traded over-the-counter (OTC). Type 2: Futures Contracts. A futures contract is very similar to a forwards contract. The similarity lies in the fact that futures contracts also mandate the sale of commodity at a future data but at a price which is decided in the present. So, these are the 4 basic types of derivatives. Modern derivative contracts include countless This contract would have the following features: Specific quantity: Each futures contract has a ‘specified quantity’. In this case, let’s assume its 100. Specified share: if you have entered into a futures contract to buy 100 reliance shares, you will have to deliver 100 reliance shares and not 100 Infosys shares.

Types of Interest Rate Swaps: 1. A Plain Vanilla Swap: This is the simplest form of Interest rate swaps where a fixed rate is exchanged for a floating rate or vice versa on a given notional principal at pre-agreed intervals during the life of the contract. 2. A Basis Swap:

Futures and Forwards A future is a contract between two parties requiring deferred delivery of underlying asset (at a contracted price and date) or a final cas… Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 8. DIFFERENCE BETWEEN FUTURES AND OPTIONS FUTURES OPTIONS Futures Contract is an agreement to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer and seller, on or before a specified time. Both the buyer and seller are obliged to buy/sell the underlying asset. 3. Forward and Futures Contracts  Both forward and futures contracts lock in a price today for the purchase or sale of something in a future time period  E.g., for the sale or purchase of commodities like gold, canola, oil, or for the sale or purchase of financial instruments such as currencies, stock indices, bonds. A futures contract is an agreement to buy (if you are long) or sell (if you are short) something in the future, at an agreed upon price (the futures price). Futures exist on financial assets (debt instruments, currencies, stock indexes), and real assets (gold, crude oil, wheat, cattle, cotton, etc.) Depending on the type of underlying asset, there are different types of futures contract available for trading. They are – Individual stock futures. Stock index futures. Commodity futures. Currency futures. Interest rate futures. INDIVIDUAL STOCK FUTURES. Individual stock futures are the simplest of all derivative instruments. Future Contracts Definition | Types Financial Future Contracts:- Financial future contracts are contracts on fixed income securities, equity indexes and currencies. The investor can effectively improve the risk-return feature of his portfolio with the help of these financial future contracts.

Depending on the type of underlying asset, there are different types of futures contract available for trading. They are – Individual stock futures. Stock index futures. Commodity futures. Currency futures. Interest rate futures. INDIVIDUAL STOCK FUTURES. Individual stock futures are the simplest of all derivative instruments.

Feb 5, 2020 However, there are many types of futures contracts available for trading including : Commodity futures such as in crude oil, natural gas, corn, and 

Jun 8, 2010 Payoffs From Futures Contracts Asset price at maturity Payoff 0 K K: Delivery price Types of Futures Contracts

  • Physical commodities  Feb 27, 2015 Traded on an exchange which sets certain standardized norms for trading in the future contract. 3. Types of financial futures contracts Futures  Nov 4, 2015 Contract specifications for index futures The Instrument type refers to “Futures contract on index” and Contract symbol - NIFTY denotes a  Oct 25, 2009 Types of Derivatives Forward contract Futures contract Derivatives Option contract Swap contract Financial & Cost Accounting Batch- XIII (B)