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Forex - Spot/Forward rates and Calculation of Premium and Discount - By CA Gopal Somani
 
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This Video explains the Concept of Spot and Forward rate, Calculation of forward Premium and Discount in foreign Exchange Management in Financial Management. This video will be helpful for CA, CS, CMA Students.
Views: 50684 CA Gopal Somani
Currency Forward Contracts
 
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This tutorial explains the basics of a currency forward contract
Views: 54752 collegefinance
Foreign Exchange Forward Contracts Explained
 
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A Forward Contract allows you to take advantage of current market prices, without having to pay all the funds now. With contracts available up to 1 year, and open periods up to 180 days, one of our dedicated Foreign Currency Exchange Specialists will work with you to determine what the best strategy is for your needs. The contract rate is determined by the length of the contract, current spot rate and the interest rate conditions of the two countries (currencies). Many companies choose to lock in forward contracts to manage foreign currency exchange risk in the future. Competing for business overseas? Forward contracts eliminate your exposure to volatile currency swings and provide you with security and peace of mind on your foreign payables and receivables. Buying a large piece of equipment in 6 months? Get into a forward contract today and know what your costs will be when it's time to pay for the equipment. For more information visit http://fx.olympiatrust.com/Corporate_forward.php
Forward contract introduction | Finance & Capital Markets | Khan Academy
 
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Forward Contract Introduction. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/forward-futures-contracts/v/futures-introduction?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/put-call-options/v/option-expiration-and-price?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 285954 Khan Academy
ACCA P4 Foreign Exchange Risk Management Currency futures lecture 1a
 
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ACCA P4 Foreign Exchange Risk Management Currency futures lecture 1a Free lectures for the ACCA P4 Advanced Financial Management Exams
Views: 9608 OpenTuition
Mod-01 Lec-10 Foreign Exchange Forward Contracts
 
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International Finance by Dr. Arun K. Misra, Department of Management, IIT Kharagpur. For more details on NPTEL visit http://nptel.iitm.ac.in
Views: 13480 nptelhrd
Forward Contract - Hindi
 
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Forward contract is explained in Hindi. A forward contract is a type of financial derivative that is used to reduce the price risk by a producer and a consumer. It is a customized contract and is not traded on an exchange. Share this Video: https://youtu.be/eRGjHvWHLVM फॉरवर्ड कॉन्ट्रैक्ट को हिंदी में एक्सप्लेन किया गया है। फॉरवर्ड कॉन्ट्रैक्ट एक तरह का फाइनेंसियल डेरिवेटिव है जिसका उपयोग किसी प्रोडूसर और कंस्यूमर द्वारा प्राइस रिस्क को कम करने के लिए किया जाता है। ये एक कस्टमाइज़्ड कॉन्ट्रैक्ट होता है जो किसी एक्सचेंज पर ट्रेड नहीं किया जाता। Subscribe To Our Channel and Get More Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g To access more learning resources on finance, check out www.assetyogi.com In this video, we have explained: What is the forward contract in financial derivatives? How forward contract helps to reduce the price risk? What is hedging in the forward contract? How forward contract works? What risks are associated with the forward contract? What are the drawbacks of forward contracts? How forward contract is different from the futures contract? How the settlement of forward contract takes place? The Forward contract is one of the four types of financial derivatives. Forward contract is a customized contract that cannot be traded on an exchange, where the futures contract is a standardized contract. Forward is self-regulated and there's no requirement for a collateral. Make sure to Like and Share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Facebook – https://www.facebook.com/assetyogi Google Plus – https://plus.google.com/+assetyogi-ay Instagram - http://instagram.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Pinterest - http://pinterest.com/assetyogi/ Twitter - http://twitter.com/assetyogi Hope you liked this video about “Forward Contract”.
Views: 8480 Asset Yogi
Hedging of Foreign Currency using Forward Contract | Advanced Accounting | CPA Exam FAR
 
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Describe a forward exchange contract. A forward exchange contract is an agreement to exchange currencies of two different countries at a specified rate (the forward rate) on a stipulated future date. At the inception of the contract, the forward rate is usually different from the spot rate. My website: https://farhatlectures.com/ Facebook page: https://www.facebook.com/accountinglectures LinkedIn: https://goo.gl/Pp2ter Twitter: https://twitter.com/farhatlectures Email Contact: [email protected]
ACCA F9 Foreign Exchange Risk Management – Forward contracts
 
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ACCA F9 Foreign Exchange Risk Management – Forward contracts Free lectures for the ACCA F9 Financial Management To benefit from this lecture, visit opentuition.com to download the free lectures notes used in the lecture and access all our free resources including all F9 lectures, practice tests and Ask the Tutor Forums. http://opentuition.com/acca/f9/ Please go to opentuition to post questions to ACCA F9 Tutor, we do not provide support on youtube. *** Complete list of free ACCA F9 lectures is available on http://opentuition.com/acca/f9/ ***
Views: 10931 OpenTuition
Forward Contract and AS 11
 
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join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, available at discounted (10% off ) price with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2MoLJ14 Enrollment Link For Students From India: https://www.instamojo.com/caraja/accounting-standards-a-complete-study/?discount=inyasacs2 Our website link : https://www.carajaclasses.com Welcome to this course "Accounting Standards A Complete Study" The objective of this course is to have a complete overview of theory and practice of Accounting Standards issued by Institute of Chartered Accountants of India. In this course, i have taken efforts to explain each and every part of Accounting Standards and they will be supported by case studies as well. Knowledge of Accounting Standards is very essential from Examination perspective as well from Practical angle. Because, Accounting Standards significantly influence the way Financial Statements are prepared and presented. Students pursuing professional courses like Chartered Accountancy, Cost and Management Accountancy, Company Secretaryship, etc. should have through knowledge of Accounting Standards. I will be covering following Accounting Standards in this course: AS 1 Disclosure of Accounting Policies AS 2 Valuation of Inventories AS 3 Cash Flow Statements AS 4 Contingencies and events occuring after Balance Sheet Date AS 5 Net Profit or Loss for the period, Prior period items and Changes in Accounting Policies AS 10 Property, Plant and Equipment AS 11 Effects of Changes in Foreign Exchange Rates AS 12 Accounting for Government Grants AS 13 Accounting for Investments AS 16 Borrowing Costs AS 17 Segment Reporting AS 22 Accounting for Taxes on Income This course is structured in self paced learning style. You can learn these number crunching topics at your own pace. Use head phone, have note pad / excel opened to scribble or take note of what you are learning. As already mentioned in the Disclaimer, i have added only two AS now. More will be added in the coming days. Wish you a happy learning.
Views: 2618 CARAJACLASSES
FORWARD CONTRACT AND FUTURE CONTRACT DERIVATIVES BY CA PAVAN KARMELE
 
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FOR PEN DRIVE CLASSES CONTACT NO. 9977223599, 9977213599 E-MAIL- [email protected]
Views: 34968 CA PAVAN KARMELE
Foreign Exchange Products - Forward Contract
 
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A Forward Contract is an agreement to exchange currencies with the bank at a specific date in the future (or during an agreed period) at a pre-agreed fixed exchange rate.
Views: 493 Bank of Ireland
Spot vs Forward Rates
 
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An intro to the difference between foreign exchange spot and forward rates. For more questions, problem sets, and additional content please see: www.Harpett.com. Video by Chase DeHan, Assistant Professor of Finance and Economics at the University of South Carolina Upstate.
Views: 54272 Harpett
Forward Pricing (Foreign Currency) - CFA Tutor
 
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This file can be used to solve problems related to pricing forward contracts on foreign exchange instruments. The first sheet will help you determine price of foreign exchange forward contract and its value at future date give a certain foreign interest rate assuming discrete compounding. The second sheet will do the same assuming continuous compounding. Related Excel File: http://cfatutor.files.wordpress.com/2013/10/forwardpricingfx.xlsm Related Reading (Post): http://cfatutor.me/2013/08/20/forward-markets-and-contracts-part-i/ CFA Exam Level: II Facebook Page: www.facebook.com/cfatutor.me Twitter: www.twitter.com/cfatutor_me Instagram: www.instagram.com/cfatutor_me Email: [email protected] WWW.CFATUTOR.ME
Views: 5322 CFATutor_ME
FX Forward contract valuation
 
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I'm showing two ways how to value a FX forward contract.
Views: 19249 Marek Kolman
CFA Level 1 Forward Currency Contract (Currency Forward Contract)
 
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Structure of forward and futures currency
Views: 36 FINACC Consultancy
Forward Exchange Contract and Forward Rate
 
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join my Whatsapp Broadcast / Group to receive daily lectures on similar topics through this Whatsapp direct link https://wa.me/917736022001 by simply messaging YOUTUBE LECTURES Did you liked this video lecture? Then please check out the complete course related to this lecture, available at discounted (10% off ) price with life time validity and certificate of completion. Enrollment Link For Students Outside India: https://bit.ly/2MoLJ14 Enrollment Link For Students From India: https://www.instamojo.com/caraja/accounting-standards-a-complete-study/?discount=inyasacs2 Our website link : https://www.carajaclasses.com Welcome to this course "Accounting Standards A Complete Study" The objective of this course is to have a complete overview of theory and practice of Accounting Standards issued by Institute of Chartered Accountants of India. In this course, i have taken efforts to explain each and every part of Accounting Standards and they will be supported by case studies as well. Knowledge of Accounting Standards is very essential from Examination perspective as well from Practical angle. Because, Accounting Standards significantly influence the way Financial Statements are prepared and presented. Students pursuing professional courses like Chartered Accountancy, Cost and Management Accountancy, Company Secretaryship, etc. should have through knowledge of Accounting Standards. I will be covering following Accounting Standards in this course: AS 1 Disclosure of Accounting Policies AS 2 Valuation of Inventories AS 3 Cash Flow Statements AS 4 Contingencies and events occuring after Balance Sheet Date AS 5 Net Profit or Loss for the period, Prior period items and Changes in Accounting Policies AS 10 Property, Plant and Equipment AS 11 Effects of Changes in Foreign Exchange Rates AS 12 Accounting for Government Grants AS 13 Accounting for Investments AS 16 Borrowing Costs AS 17 Segment Reporting AS 22 Accounting for Taxes on Income This course is structured in self paced learning style. You can learn these number crunching topics at your own pace. Use head phone, have note pad / excel opened to scribble or take note of what you are learning. As already mentioned in the Disclaimer, i have added only two AS now. More will be added in the coming days. Wish you a happy learning.
Views: 340 CARAJACLASSES
Cancellation and Extension of Forward Contracts - Foreign Exchange Management | Commerce News Guruji
 
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Hello guys, in this video we'll discuss about Forward Contract & its cancellation, extension and consequences thereof. We'll also discuss who will indemnify to other party in case of cancellation of forward contract and how the same would be computed. Know more about Cover Deals, click below https://youtu.be/HtlFsKB4rKU So watch the full video and share with your family and friends. Like, Share and Subscribe the channel Website: http://www.commercenewsguruji.com Youtube: https://www.youtube.com/commercenewsguruji Facebook: https://facebook.com/commercenewsguruji Instagram: https://instagram.com/commercenewsguruji Twitter: https://twitter.com/comnewsguruji E-mail: [email protected] Personal Facebook Profile: http://Facebook.com/anujkumarshuklaa
Views: 2878 Commerce News Guruji
Forward Market Arbitrage
 
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Views: 5379 arnoldhite
FOREX - Cancellation of Forward Contract - By CA Gopal Somani
 
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This video explains the concept and treatment of Cancellation of Forward Contract. This video will be useful for CA, CS, CMA Students.
Views: 5396 CA Gopal Somani
Currency Futures Trading Basics
 
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http://www.marketgeeks.com Download Your Free Swing Trading Report Today. Currencies are the biggest markets in the world. Learn the basics so that you can take advantage of this great trading market. More Info: http://www.marketgeeks.com/currency-futures-trading-learning-the-basics/ File Under: currency futures trading, currency trading, currencies, fx, foreign currency trading, short term trading, swing trading, day trading.
Views: 22386 Market Geeks
Currency Forward Agreement
 
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This video from N S Toor School of Banking provides explanation of currency forward agreement along with its working through a case.
Views: 20036 Ns Toor
Hedging with Forwards
 
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Capital Markets & Derivative Training video: Hedging with Forwards - Introduction
Views: 16335 CMDTtraining
Basics of Currency Trading (Part 1) - Currency Spot & Currency Forward Market
 
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ABOUT VIDEO: This video will help viewers understand how currencies spot market and currencies forward market works. How can you exchange currencies. How does companies enter into a forward contract with banks to hedge their currency risk and how does it benefit both the parties. After watching this video also watch the part 2 which will help you understand the currencies future market and non deliverable forwards market (NDF) (Link: http://www.youtube.com/watch?v=Bo-zxEzLT9k) Please leave us a comment/suggestion on our video and do hit "LIKE" if you like the video. SUBSCRIBE TO OUR CHANNEL FOR FULL ACCESS TO ALL OUR VIDEOS ABOUT US: Ambition Learning Solutions is a preemptive training institute providing trainings to undergraduates, post graduates and working professionals on various international certification programs like Certified Financial Planner (CFP), Certified Credit Research Analyst (CCRA), Basics of Financial Markets, Macro Economic Indicators impacting the Financial Markets, Derivatives Market, Technical Analysis, Credit Research, Commercial Banking, Investment Banking, Financial Modeling, Advance Excel, Equity Research, Diploma in Banking and Finance (DBF), NSE's Certified Capital Market Professional (NCCMP) etc. We assist corporate by providing qualified human resources for their operation and expansion requirement. We train their existing staff to furnish them with the latest updates and techniques in their respective domains. Reach us at: Website: www.ambitionlearning.com Facebook: https://www.facebook.com/groups/ambitionlearning/ Email: [email protected] Linkedin: http://www.linkedin.com/profile/view?id=67196015&trk=wvmp-profile
Currency Forwards Essentials
 
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A super and simple introduction to currency forwards. For the whole course on fund accounting for currency forwards visit https://quickstep.ie/training
Views: 5108 Quickstep Training
Spot and Forward Contracts versus Forex Options
 
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Spot and Forward Contracts versus Forex Options. Zoe Fiddes, Head of Sales at ORE.com comments. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Spot trading is generally short-term trading but if you wish to hold trades for longer, your broker can roll the position forward to the next day. Forward contracts are best for holding positions over the longer term. An option contract is slightly different to spot and forward contracts. Options allow you to reserve a rate in the market...
Views: 6134 UKspreadbetting
FOREX - Early Delivery of Forward Contract - By CA Gopal Somani
 
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This video explains the concept and treatment of Early delivery of Forward Contract. This video will be useful for CA, CS, CMA Students.
Views: 3792 CA Gopal Somani
What is FOREIGN EXCHANGE HEDGE? What does FOREIGN EXCHANGE HEDGE mean?
 
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What is FOREIGN EXCHANGE HEDGE? What does FOREIGN EXCHANGE HEDGE mean? FOREIGN EXCHANGE HEDGE definition - FOREIGN EXCHANGE HEDGE meaning - FOREIGN EXCHANGE HEDGE explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A foreign exchange hedge (also called a FOREX hedge) is a method used by companies to eliminate or "hedge" their foreign exchange risk resulting from transactions in foreign currencies (see foreign exchange derivative). This is done using either the cash flow hedge or the fair value method. The accounting rules for this are addressed by both the International Financial Reporting Standards (IFRS) and by the US Generally Accepted Accounting Principles (US GAAP) as well as other national accounting standards. A foreign exchange hedge transfers the foreign exchange risk from the trading or investing company to a business that carries the risk, such as a bank. There is cost to the company for setting up a hedge. By setting up a hedge, the company also forgoes any profit if the movement in the exchange rate would be favourable to it. When companies conduct business across borders, they must deal in foreign currencies. Companies must exchange foreign currencies for home currencies when dealing with receivables, and vice versa for payables. This is done at the current exchange rate between the two countries. Foreign exchange risk is the risk that the exchange rate will change unfavorably before payment is made or received in the currency . For example, if a United States company doing business in Japan is compensated in yen, that company has risk associated with fluctuations in the value of the yen versus the United States dollar. A hedge is a type of derivative, or a financial instrument, that derives its value from an underlying asset. Hedging is a way for a company to minimize or eliminate foreign exchange risk. Two common hedges are forward contracts and options. A forward contract will lock in an exchange rate today at which the currency transaction will occur at the future date. An option sets an exchange rate at which the company may choose to exchange currencies. If the current exchange rate is more favorable, then the company will not exercise this option. The main difference between the hedge methods is who derives the benefit of a favourable movement in the exchange rate. With a forward contract the other party derives the benefit, while with an option the company retains the benefit by choosing not to exercise the option if the exchange rate moves in its favour. Guidelines for accounting for financial derivatives are given under IFRS 7. Under this standard, “an entity shall group financial instruments into classes that are appropriate to the nature of the information disclosed and that take into account the characteristics of those financial instruments. An entity shall provide sufficient information to permit reconciliation to the line items presented in the balance sheet”. Derivatives should be grouped together on the balance sheet and valuation information should be disclosed in the footnotes. This seems fairly straightforward, but IASB has issued two standards to help further explain this procedure. The International Accounting Standards IAS 32 and 39 help to give further direction for the proper accounting of derivative financial instruments. IAS 32 defines a “financial instrument” as “any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity”. Therefore, a forward contract or option would create a financial asset for one entity and a financial liability for another. The entity required to pay the contract holds a liability, while the entity receiving the contract payment holds an asset.
Views: 4139 The Audiopedia
Forward Contracts Part I / Forex / CS Professional
 
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Buy Video lectures at http://www.conferenza.in/
Views: 249 CS Video Lectures
Forward Contract Accounting With Journal Entries (Hedge Accounting)
 
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Accounting required for a forward contract which is a financial derivative instrument, how to record a forward contract on the Balance Sheet And Income Statement from both the buyers and sellers propsective,seller agrees to deliver specific amount of an asset (commodity) in the future while buyer agrees to purchase asset in the future, example includes the contract date, when asset is exchanged and revaluation or amortization of any discount or premium, also spot and forward rates, forward price, detailed accounting example with journal entries by Allen Mursau
Views: 51544 Allen Mursau
CFA Level I - Forward Contract- Part I
 
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We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture series, visit us at www.fintreeindia.com This Video lecture was recorded by Mr. Utkarsh Jain, during his live CFA Level I Classes in Pune (India). This video lecture covers following key area's: 1. Delivery/settlement and default risk for both long and short positions in a forward contract. 2. Procedures for settling a forward contract at expiration, and how termination prior to expiration can affect credit risk. 3. Distinguish between a dealer and an end user of a forward contract. 4. Characteristics of equity forward contracts and forward contracts on zero-coupon and coupon bonds. 5. Characteristics of the Eurodollar time deposit market, and define LIBOR and Euribor 6. Forward rate agreements (FRAs). 7. Payoff of a FRA . 8. Characteristics of currency forward contracts.
Views: 44282 FinTree
Futures Hedging Example
 
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A walkthrough of a specific hedging example using the RBOB Gasoline Futures.
Views: 133504 Kevin Bracker
Futures Market Explained
 
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Farmers use various tools to control the many risks in agriculture. Watching the weather influences when they plant or harvest. Buying crop insurance and selecting farm bill safety net programs helps protect them from crop devastation. But they can also manage some of the threat posed by volatile market prices by participating in the futures market. Farmers can get a feel for how that works if they play Commodity Classic, an online teaching tool that uses fictitious bushels of grain in a fake futures market. But here at Harvest Public Media, we wanted to better understand how the futures market helps both producers and users of a major commodity, such as corn. And how the benefits trickle down to regular food consumers. Here’s what we learned.
Views: 198650 Harvest Public Media
VaR of Forward Foreign Currency Contract
 
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First, we used the formula for the value of a forward contract to identify the three risk factors. This is the essential mapping idea: we characterize the portfolio as a set of exposures to underlying risk factors. In this case, a forward currency contract maps to a long position in a foreign currency spot rate, a long position in a foreign interest rate (EUR bill) and a short position in a domestic interest rate (USD bill). Second, we develop input assumptions: VaR for the risk factors and the correlation matrix. Third, we use the formula for portfolio VaR: post-multiply R(xV) and then pre-multiply (xV)'R(xV). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 16313 Bionic Turtle
CA Final SFM - Forex Amendment Part 3/4-Cancellation of Forward Contract
 
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Join Telegram "CA Mayank Kothari" https://t.me/joinchat/AAAAAE1xyAre8Jv7G8MAOQ Refer Questions in Supplementary Module Illustration 4 on Page C.9 For more details visit http://www.conferenza.in
Views: 14940 CA Mayank Kothari
Non-deliverable Forward Contracts
 
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This tutorial explains the concepts of currency non-deliverable forward contracts or NDFs
Views: 20021 collegefinance
AS (11) Forward Contracts
 
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Accounting Standard 11, AS (11) Effects of Changes in Foreign Exchange Rate, Forward Contracts Accounting For Forward Contracts
What is CURRENCY FUTURE? What does CURRENCY FUTURE mean? CURRENCY FUTURE meaning & explanation
 
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What is CURRENCY FUTURE? What does CURRENCY FUTURE mean? CURRENCY FUTURE meaning - CURRENCY FUTURE definition - CURRENCY FUTURE explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ A currency future, also known as an FX future or a foreign exchange future, is a futures contract to exchange one currency for another at a specified date in the future at a price (exchange rate) that is fixed on the purchase date; see Foreign exchange derivative. Typically, one of the currencies is the US dollar. The price of a future is then in terms of US dollars per unit of other currency. This can be different from the standard way of quoting in the spot foreign exchange markets. The trade unit of each contract is then a certain amount of other currency, for instance €125,000. Most contracts have physical delivery, so for those held at the end of the last trading day, actual payments are made in each currency. However, most contracts are closed out before that. Investors can close out the contract at any time prior to the contract's delivery date. Currency futures were first created in 1970 at the International Commercial Exchange in New York. But the contracts did not "take off" because the Bretton Woods system was still in effect. They did so a full two years before the Chicago Mercantile Exchange (CME) in 1972, less than one year after the system of fixed exchange rates was abandoned along with the gold standard. Some commodity traders at the CME did not have access to the inter-bank exchange markets in the early 1970s, when they believed that significant changes were about to take place in the currency market. The CME actually now gives credit to the International Commercial Exchange (not to be confused with ICE) for creating the currency contract, and state that they came up with the idea independently of the International Commercial Exchange. The CME established the International Monetary Market (IMM) and launched trading in seven currency futures on May 16, 1972. Today, the IMM is a division of CME. In the fourth quarter of 2009, CME Group FX volume averaged 754,000 contracts per day, reflecting average daily notional value of approximately $100 billion. Currently most of these are traded electronically. Other futures exchanges that trade currency futures are Euronext.liffe, Tokyo Financial Exchange and Intercontinental Exchange . As with other futures, the conventional maturity dates are the IMM dates, namely the third Wednesday in March, June, September and December. The conventional option maturity dates are the first Friday after the first Wednesday for the given month. Investors use these futures contracts to hedge against foreign exchange risk. If an investor will receive a cashflow denominated in a foreign currency on some future date, that investor can lock in the current exchange rate by entering into an offsetting currency futures position that expires on the date of the cashflow. For example, Jane is a US-based investor who will receive €1,000,000 on December 1. The current exchange rate implied by the futures is $1.2/€. She can lock in this exchange rate by selling €1,000,000 worth of futures contracts expiring on December 1. That way, she is guaranteed an exchange rate of $1.2/€ regardless of exchange rate fluctuations in the meantime. Currency futures can also be used to speculate and, by incurring a risk, attempt to profit from rising or falling exchange rates. For example, Peter buys 10 September CME Euro FX Futures, at $1.2713/€. At the end of the day, the futures close at $1.2784/€. The change in price is $0.0071/€. As each contract is over €125,000, and he has 10 contracts, his profit is $8,875. As with any future, this is paid to him immediately. More generally, each change of $0.0001/€ (the minimum Commodity tick size), is a profit or loss of $12.50 per contract.
Views: 3115 The Audiopedia
DERIVATIVES - Forwards, Futures & Options explained in Brief!
 
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Derivatives - Forwards, Futures and Options explained in Brief! In this video, Understand what is an option, what is a forward contract and what is a future contract in details. Presented by Elearnmarkets.com. To learn more about Derivatives, check out https://www.elearnmarkets.com/subject/derivatives To get more updates Follow us on- Facebook- https://www.facebook.com/elearnmarkets Twitter- https://twitter.com/elearnmarkets Google Plus- https://plus.google.com/u/0/109333708... Linkedin- https://www.linkedin.com/company/9399886
Views: 321142 Elearnmarkets.com
Risk factors in a forward foreign currency contract
 
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We use the formula for the value of a forward contract to infer the three risk factors that can be mapped from a forward foreign currency contract: spot exchange rate, domestic interest rate, and foreign interest rate.
Views: 11155 Bionic Turtle
ACCA FM Forward contracts vs future contracts (Video 10)
 
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ACCA FM Forward contracts vs future contracts (Video 10) Subscribe to our channel here: https://www.youtube.com/channel/UCm-7H8Pfk53a5jzBwZMcjbw ABOUT THIS VIDEO: This video shows you the differences between the forward contracts and future contracts. The Foreign Exchange questions came up a few times in the past ACCA FM exams. So make sure you learn this well. Thanks for watching and we hope that you keep up with the videos we post. Hit the subscribe button and share it with those that need to hear it! We would appreciate any comments, so please take a second and say ‘Hey’ ;). Watch more free videos in the aCOWtancy ACCA FM Online Classroom: https://www.acowtancy.com/papers/acca-fm/ Follow our ACCA FM "Foreign Exchange" free videos in our Playlist: https://www.youtube.com/playlist?list=PLVQo_WKx0T9FuJaHoNGniKc-uQNzUmNkO ABOUT aCOWtancy: aCOWtancy is the world's best and most innovative ACCA tuition website. ACCA stands for the Association of Chartered Certified Accountants. Our offer is simple - we promise you 3 things: 1) You will enjoy studying ACCA at last! 2) You will find ACCA simple and easy to understand. 3) You will feel confident about passing every exam. We are a platinum academy – teaching ACCA, CIMA and CAT with a revolutionary new teaching concept that is incredibly popular around the world. aCOWtancy is different. It is built on these fundamental principles: Quality The science of learning Technology Simplicity Follow Us Online Here: Website: https://www.acowtancy.com Facebook: https://www.facebook.com/acowtancy/ Twitter: https://twitter.com/aCOWtancy Pinterest: https://uk.pinterest.com/acowtancy/pins/ To Replay this video: https://youtu.be/0fjJlhc-HFw
Views: 211 aCOWtancy
Non Deliverable Forward Contract - Mechanics & Hedging
 
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@ Members :: This Video would let you know about mechanics to hedge your Fair Value exposure using Non Deliverable Forward Contracts (NDF) in Offshore Treasury Centres like SG, HK, London, NY, Australia, Japan, Dubai and Shanghai You are most welcome to connect with us at 91-9899242978 (Handheld) , Skype ~Rahul5327 , Twitter @ Rahulmagan8 , [email protected] , [email protected] or visit our website - www.treasuryconsulting.in
6 Difference Between Spot Rate And Forward Rate
 
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1. The forward rate is the settlement price of a forward contract, while the spot rate is the settlement price of a spot contract. 2. A spot rate is used by buyers and sellers looking to make an immediate purchase or sale, while a forward rate is considered to be the market's expectations for future prices. 3. A forward rate is the amount someone will agree today to pay for something at a specified future time. 4. Spot exchange rates are the rates that are applicable for purchase and sale of foreign exchange on spot delivery basis or immediate delivery basis. 5. A spot contract is a contract that involves the purchase or sale of a commodity, security, or currency for immediate delivery and payment on the spot date, which is normally two business days after the trade date.  6. Both spot rates and forward rates are agreed to in the present. It's the timing of the execution that's different.
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Utilization of Forwards Contracts - STFX & LTFX
 
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@ Members :: This Video would let you know about Utilization of Forwards Contracts covering both STFX ( Short Term Forwards Contracts ) & LTFX ( Long Term Forwards Contracts ) having Settlement on Maturity , Pre utilization ( Window Forward Contract ) , Cancellation and Rollover. You are most welcome to connect with us at 91-9899242978 (Handheld) , Skype ~Rahul5327 , Twitter @ Rahulmagan8 , [email protected] , [email protected] or visit our website - www.treasuryconsulting.in
JAIIB Foreign Exchange Forex Forward Rates Premium Discount By Vishal Mantri 9960560404
 
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JAIIB Foreign Exchange Forex Forward Rates Premium Discount fully explained. Get question bank with explanations on https://yuvaguru.com The bid/ask spread of the fx and interest rate markets accounts for the 12 fx point balance. The example serves to provide a “back of the envelope” guide to calculating fx forward points and outright rates. Even though the calculation of the forward points is mathematically derived from the interest rate market, interest rates themselves are the market’s expectation of the outlook for an economy’s fundamentals i.e. subjective. Therefore the fx forward points are derived from traders positioning on interest rate differentials. Exporters from countries with higher interest rate environments such as New Zealand and Australia benefit from the negative forward points, while it is a cost to importers. An exporter wants a weak base currency so large negative forward points are an economic advantage. With an upward sloping interest rate yield curve (or more correctly positive interest rate differential) forward points will be more negative the longer the time horizon. An importer wants a strong currency therefore negative forward points are detrimental to the hedged conversion rate. The impact of negative forward points is a reason that exporters often have longer term hedging horizons compared to importers because the impact of forward points are not penal. Forward exchange contracts are therefore a flexible, and relatively easy to understand, hedging tool that is commonly used to bring certainty to those grappling with foreign exchange exposures and the volatility of the financial markets.
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4  Spot and forward rate
 
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SPOT RATE - The price quoted for immediate settlement on a commodity, a security or a currency. The spot rate, also called “spot price,”The spot rate from a foreign exchange perspective is also called the “benchmark rate,” “straightforward rate” or “outright rate.”. Based on supply and demand FORWARD RATE A rate applicable to a financial transaction that will take place in the future. Forward rates are based on the spot rate,It may also refer to the rate fixed for a future financial obligation. Forward rates are widely used for hedging purposes.
Views: 15998 financeschoolin