The Indian money market is "a market for short-term and Long term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money."[1] It is diversified and has evolved through many stages‚ from the conventional pla...
结果1 题目 (b)Discuss the relative advantages and disadvantages of the use of a money market hedge compared with using exchange traded derivatives for hedging a foreign exchange exposure 相关知识点: 试题来源: 解析 官方提供 反馈 收藏 ...
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currency derivatives, used to hedge risk or make profits cross currency swaps, where 2 parties agreed to exchange interest payments in different currencies for specified time, and emerging market currencies, which now account for more than 20% of all currency trading....
Because CFDs are leveraged products, traders can open significant positions with a fraction of the capital required to trade the underlying assets directly. This capital efficiency allows traders to maximize their exposure to the market without tying up large sums of money. It also allows traders ...
The main disadvantage of a hedge is that, in reducing risk, the hedge is also cutting into the investor's potential reward. Hedges are not free, but must be purchased from another party. Like an insurance policy, a hedge costs money. And, if the main position produces profits as planned...
Gold coins can be a unique, tangible addition to your investment portfolio. While they come with their own set of risks — like storage concerns and the lack of dividends — they also offer stability during market downturns and act as a hedge against inflation. Whether you’re drawn to gold...
This flexibility to hedge positions not only reduces risk but also ensures that your overall investment strategy remains balanced, even during periods of market turbulence. 5. Market transparency and advanced tools Unlike some financial markets, forex offers a high degree of transparency. The decentrali...
Suppose you wish to purchase the stock of XYZ Corp. because you think it will go up in the next few months. You want to buy 200 shares while XYZ is trading at $131; this would cost you $26,200. Instead of putting up that much money, you could have gone into the options market, ...
The actual stock/commodity being traded is rarely exchanged or delivered, except on the occasion when someone trades to hedge against a price rise and takes delivery of the commodity/stock on expiration. Futures are usually a paper transaction for investors interested solely on speculative profit. ...