trade confirmation

Trade Confirmation

Trade Confirmation

As mentioned in previous blogs, the trade lifecycle involves a number of steps from the trade initiation to trade settlement and further. Once the trade order is placed, captured, validated, and enriched, the next step is confirmation of the trade.  It is an extremely critical step for the settlement of the trade. Confirmation of trade involves reporting of completion of financial transactions. This article aims to provide an overview of the order confirmation stage. (more…)

At the Money Options

At the Money Options

What is meant by at the money? There are three words that are used to characterize the connection between the options strike price and the price of the underlying asset. One of these expressions is "at the money." There are three possible outcomes for options: at the money, in the money, or out of the money. When referring to options, "at the money" refers to a situation in which the strike price of the option and the price of the underlying securities are equal. In a nutshell, an option is said to be "at the money" when the current price of the underlying stock is the same as the striking price. (more…)
Over-the-counter (OTC) Market

Over-The-Counter Market

Over-The-Counter Market

In contrast to exchange, Over-the-counter (OTC) Market i.e. off-market trading happens electronically. Over-the-counter markets structured in a way as a fundamental component of worldwide money, OTC derivatives have uncommon significance. The more prominent adaptability gave to advertise market participants to modify derivative contracts to all as per the suitability to their risk exposure. (more…)
DEBT SECURITIES VS EQUITY SECURITIES

Debt Securities vs Equity Securities

Debt Securities vs Equity Securities

Debt securities are financial assets that define the terms of a loan between an issuer (the borrower) and an investor (the lender). Equity securities are financial assets that appear to be the shares of a corporation. (more…)
Foreign Exchange Risk

Foreign Exchange Risk – Full Details

What is Foreign Exchange Risk?

Foreign exchange risk refers to the risk that an investment value will change due to change in two different currencies. It is also known as currency risk or exchange rate risk. Exposure to foreign exchange risk is the natural result of the globalization of financial institutions. This risk arises when foreign exchange currency trading and/or foreign asset-liability positions are mismatched in individual currencies. Unexpected volatility could result in significant losses for the firm, which could threaten profitability or even solvency. (more…)
Settlement of Future Contract

Settlement of Futures Contract – Complete Understanding

Settlement of Futures Contract

Derivatives settlement is a business process where the contract is executed on a pre-decided date and at a pre-determined price. On the settlement date, a person having a short position either deliver the actual underlying asset which is called as Physical Delivery for which the derivative contract has been undertaken. The other method is the Cash settlement method in which the cash position is transferred from the buyer to the seller on the settlement date. (more…)
Which one is better, an MBA in finance, or a CFA?

Which one is better, an MBA in finance or a CFA?

Which one is better, an MBA in finance, or a CFA?

Pursuing an MBA in finance or a CFA largely depends upon the area of interest: MBA Master’s in Business Administration gives an introduction to various areas of business like marketing, human resources, operations management, IT, and Finance. The MBA degree works not only in the business sector but in the government sector, public sector, and private businesses too. Pursuing an MBA is about learning various core subjects as they are applicable in various fields. (more…)
Salary After CFA

Salary After CFA

Salary After CFA

In the long term, your salary would depend on how you perform in a particular role. A lot depends on which industry and the role you want to pursue your career as well as where in the world you intend to work. The CFA has a strong reputation for financial knowledge, skill, and determination, stronger than university degrees. (more…)
Are there any benefits of doing CFA after CA?

Are there any benefits of doing CFA after CA?

Are there any benefits of doing CFA after CA?

Yes, there are some undeniable benefits: Companies will hire you based on your double degree because they will assume that you know a lot. There are many people in many different companies who think alike. Your value will increase after you quit because you now have, experience. You can now demand a higher salary. You can also ask for a pay hike once you have experience. (more…)