A derivative is an instrument that derives its value from an underlying asset. The Foreign Exchange Management (Foreign Exchange Derivatives Contracts) Regulations 2000 defines a foreign exchange derivatives contract as a financial transaction or arrangement in whatever form or name, whose value is derived from price movement in one or more underlying assets and includes: i. A transaction which involves [...]
The following points highlight the four main products of currency derivatives. The products are: 1. Forward Contract 2. Futures Contract 3. Options Contract 4. Swaps. 1. Forward Contract: Forward contracts are used by companies and individuals to hedge currency risk. In December 2003, the RBI permitted resident individuals to enter into forward contracts to hedge their foreign exchange risk. Resident [...]
Here is an essay on ‘Eurocurrency Market’ for class 9, 10, 11 and 12. Find paragraphs, long and short essays on ‘Eurocurrency Market’ especially written for school and college students. Essay Contents: Essay on the Introduction to Eurocurrency Market Essay on Eurocurrency Deposits and Loans Essay on Eurocurrency Market Versus the Foreign Exchange Market Essay on the Growth of the [...]