--%>
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 : Find the expected dividend for each of

    Suppose a firm's common stock paid a dividend of $1.75 yesterday. You expect the dividend to grow at the rate of 8% per year for the next 3 years, if you buy the stock, you plan to hold it for 3 years and then sell it.

    Q : Define Factitious Assets Factitious

    Factitious Assets: When any asset that has no market price which asset is termed as factitious assets. This is illustrated as expenditures of capital expenditure. The main illustration of such factitious assets is: Preliminary expenses, discount on is

    		•
  • Q : Abatement The process of allocating the

    The process of allocating the arrears of estate assets to the distributions. Distributions from the estate proceed in a particular order starting with specific legacies, effusive legacies, general legacies, and finally residuary legacies. If legacies assets are not capable to meet the will's prov

    		•
  • Q : What is Purchase What is Purchase .

    What is Purchase. Briefly state the definition of it?

    		•
  • Q : Evaluate the impact of a recent

    A 2000 word essay (maximum allowed 2,200) Accessing Learning Outcomes: Knowledge 1 and 2 Skills 1, 2, 3 and 5                 "Evaluate the impact of a recent healthcare initiative on nursing practice".<

    		•
  • Q : Investment approach of Bill Miller

    Investment approach of Bill Miller: In comparison to both Warren Buffet and Peter Lynch, Miller is considered to be a slightly more aggressive investor.  Miller believed in playing big which meant that he used

    		•
  • Q : Investment approach of Lynch Investment

    Investment approach of Lynch: Peter Lynch, the best known mutual fund manager, also adopts the words of Benjamin Graham in the sense that he looks at companies not from the perspective of how the stock prices move

    		•
  • Q : What is Account What is Account .

    What is Account. Explain briefly.

    		•
  • Q : Accountant & Financial In Business

    Questions 1. Identify the services or programs to be included in the cost and profitability analysis. 2. Examine the costs listed in Table 2. a. Identify the direct costs associated with each service or program. b. Which costs would be organization

    		•
  • Q : Describe the term Operating Expenses

    Describe the term Operating Expenses in business accountancy?

    		•