Operation of currency forward and futures market
Describe basic differences between operation of a currency forward market and a futures market.
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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.
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Asset Disposition: Getting rid of the asset or security via a direct sale or some other technique. Quite frequently you will observe insider trades report a "disposition" of some number of shares; this merely means that they sold them. Discover Q & A Leading Solution Library Avail More Than 1460128 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1958166 Asked 3,689 Active Tutors 1460128 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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