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Posts tagged as “Derivative”

Basics of Swaps

A swap is a derivative contract where two parties agree to exchange the cash flows from two different financial instruments over a specified period.

Basics of Forwards Contracts

A forward contract is a private, non-standardized agreement between two parties to buy or sell an asset at a pre-agreed-upon price on a specific date in the future.

Off-Balance-Sheet Risk

Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.

Temporary Monopoly

A "temporary monopoly" typically refers to a limited period during which a single entity has exclusive control over a product, service, or technology in a particular market.

Why Stock Futures Matter?

Stock futures are derivative contracts that obligate a buyer to purchase, or a seller to sell, a specific stock market index or individual stock at a predetermined price on a specified future date.

A Guide to Options Greeks

In the intricate world of options trading, understanding and managing risk is paramount. While the price of an option appears as a single number, it's a dynamic reflection of multiple underlying factors.