--%>
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 : Performing the capital budgeting

    Explain difference between performing the capital budgeting analysis from the parent firm’s perspective as opposed to the project perspective.

    		•
  • Q : Bankruptcy A legal process that allows

    A legal process that allows a debtor, either a person or a business, to redundant some or all of the debt. The normal process involves selling asset and using the proceeds to pay off creditors in an order and/or in an amount determined by a judge. Some types of bankru

    		•
  • Q : History of Holding Period Describe the

    Describe the History of Holding Period in brief?

    		•
  • Q : Architectural Symbolism-house-style

    Wriet a report on the term Architectural Symbolism:a study of house-style meanings ?

    		•
  • Q : Capital budgeting analysis State some

    State some of the problems which may enter into capital budgeting analysis in case project debt is computed rather than borrowing capacity made by the project?

    		•
  • Q : Imports and exports of U.S Give some

    Give some remark over the given statement: “As imports of the U.S. is more than its exports, it is essential for U.S. to import the capital from foreign countries in order to finance its current account deficits.”

    		•
  • Q : Components of social interaction

    Identify and explain important components of social interaction.

    		•
  • Q : Parallel and back-to-back loan

    Distinguish between the parallel loan and the back-to-back loan.

    		•
  • Q : Define Conspicuous Consumption

    Conspicuous Consumption: It is the phenomena of spending money on services and goods which are not required but keeping them gives you a high social status. Those things are kept mainly for the purpose of displaying and creating a false image of your

    		•
  • Q : International diversification Evaluate

    Evaluate the home country’s multinational corporations as a tool for the international diversification.

    		•