--%>
Assignment Help - homework help

Operation of currency forward and futures market

Describe basic differences between operation of a currency forward market and a futures market.

E

Expert

Verified

Forward market is an OTC market where forward contract for the sale or purchase of foreign currency is tailor-made between the client and its international bank.  No money changes hands up till the maturity date of the contract when the delivery and receipt are generally made.  A futures contract is an exchange-traded instrument with the standardized attributes stating the contract size and the delivery date.  Futures contracts are marked-to-market daily in order to reflect the changes in settlement price.  Delivery is made sometimes in the futures market.  Instead a reversing trade is made to close out a short or long position.

   Related Questions in Financial Accounting

  • Q : What is Creditors Equity What is

    What is Creditor's Equity. Also write down its formula.

    		•
  • Q : Prepare the balance sheet At the end of

    At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash

    		•
  • Q : Personal identities-Organization health

    Personal identities: Generally employees like to work as they interact with animals and success motivates them, they learn new things in their routine job and they are a member to team.  But some job requirements like conducting euthanasia impact

    		•
  • Q : NPV capital budgeting framework Specify

    Specify intuition behind NPV capital budgeting framework?

    		•
  • Q : Hedging transaction exposure and money

    Compare and discuss the hedging transaction exposure by using the forward contract vs. money market instruments. When the optional hedging approaches do creates the same result?

    		•
  • Q : Define Financial Accounting Give a

    Give a brief introduction of the term ‘Financial Accounting’. And also write down its elements?

    		•
  • Q : Balance sheet A listing of the

        A listing of the liabilities, assets, and equity of an entity at a point in time, the end of a month, or quarter, or year. It is one of the four financial statements required in a full financial report. The balance sheet gives the reader what the entity owns (assets)

    		•
  • Q : Styles of love Identify and explain the

    Identify and explain the styles of love. Describe each of these styles and give an example of each.

    		•
  • Q : Social issues & person statuses Think

    Think of person you will who often irritates you or whose behaviour greats on your nerves. First list that person statuses and role then analysed his or her possible role expectations, role performance, role conflict and role strai

    		•
  • Q : Maximum factors Explain the Maximum

    Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?

    		•