It is a financial instrument as it has monetary value. Derivative comes out of the word Derive, which means to …
What do you mean by Forward ?
Forward is an Over-The-Counter Derivative contract to buy or sell the underlying asset Example: X and Y are entering into …
What do you mean by Futures?
Futures are Exchange Traded Derivatives contract to buy or sell the underlying asset. It will be executed at the future …
What do you mean by Swaps?
Swaps is an Over-The-Counter Derivative contract wherein, cashflows will be exchanged between the counterparties as per the agreement. Example, one …