Offset: Offsetting in Derivatives Contracts, examples
Reading Time: 5 minutesOffset is said to eliminate or minimize risks, liabilities, or exposures in one area through the compensation of gains, assets, or obligations in another. It is a…
Open Interest: All You Need to Know, vs. Trading Volume
Reading Time: 8 minutesIn the financial markets, there are two of the most essential indicators that you as a trader employ for trading, namely, open interest and trading volume. Both…
Financial derivatives: Types,advantages, risks associated
Reading Time: 5 minutesDerivatives have become an essential commodity in today’s complex financial sector. These instruments obtain their worth from other securities for instance, equities, bonds, currency, rates of interest…
Equity Derivatives
Reading Time: 5 minutesEquity derivatives derive their value from an underlying equity, which can be a stock or an equity index. This provides the investor with an opportunity to bet…
What is the purpose of Embedded Derivatives? features, examples
Reading Time: 3 minutes Introduction An embedded derivative is a financial product included in a broader contract, such as a loan or bond, and whose value is based on an…