Tag Archives : forward contract

History of Futures Contract

History of Futures Contract

Futures are a name given to a financial derivative referred to as a forward contract. By a futures contract the seller is obliged to provide a commodity or other asset to the buyer at an agreed-upon date. For commodities such as sugar, coffee, oil and wheat futures are widely traded, along with these commodities they are also traded for…

What is Covered Interest Arbitrage?

What is Covered Interest Arbitrage?

Covered interest arbitrage is the name given to an investment strategy. In this strategy an investor buys a financial instrument that is denominated in a foreign currency, and by selling a forward contract in the amount of the proceeds…

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