Category: Derivatives market

Put Option

A put or put option is a deal between two parties to exchange an underlying instrument, at a predetermined price (the strike), by a specified date (also referred to as a maturity date). While one party, the buyer of...

Call Option

A call option also referred to as simply call is a financial transaction between two parties, a buyer and seller for this type of option trading. In this contract, the buyer has a right...

Credit derivative

Overview of Credit Derivatives A credit asset is the extension of credit in some form: normally a loan, accounts receivable, installment credit or financial lease contract. Every credit asset is a bundle of risks...

Securitization

The process through which various different kinds of debt that is initiated and managed through contracts is pooled into a financial product is known as securitization. This financial pooling can consist of debt instruments...

Derivatives Market

The derivatives market is the market for financial instruments derived from another asset. Futures and options contracts are one example of derivatives. A derivatives market may be exchange regulated or over-the-counter. Not only is...

Hybrid security

A security which covers two or more than two financial products is called hybrid security. New kinds of securities are made after short intervals of time to fulfill the requirements of different types of...

Montreal Exchange

The Montreal Exchange (Bourse de Montréal) or simply MX is a futures and options (derivatives) exchange located in the Canadian city of Montreal. Along with equities, it offers derivative products in currencies, indices, Exchange...

Futures Exchange

  A futures exchange is the main entity where investors can buy or sell regular futures contracts; it may also called a futures market. A futures contract is a derivative agreement to buy a...