What is a flow derivative?

The

flow derivative is a special type of securitized derivative, which uses the process of maximum lever power to potential achievement of very large financial gains with small market movements. Unlike other derivatives that can be based on anything from futures to rice to the exchange of traded funds (ETF), the flow derivative is based on moving the value in the trading of currencies associated with a set of assets. The market for international electronic currency trading is known as the Forex (Forex). There are several different types of financial instruments of the flow of the flow, including vanilla possibilities, barrier or wool and more. All tools for flow derivative are set to grow or declining values ​​in fluctuations in exchange courses for currencies. Normally an investor in traditional shares that plants an order or sells an ordering time before filling in the order depending on the volume of trading and other factors. With a flow derivative, the order is entered automatically and speculatorsThey occupy positions on growing or decreasing values ​​with a financial instrument.

The point position with the derivative of the flow is an agreement between the buyer and the seller, where one currency is compared against the other and a specific date of trade is determined. Since 2010, the spot position has been popular enough to correspond to more than a third of all trade that takes place on Forex. The position of the position will always take place two days after the agreement, with the exception of a handful of currencies, such as the US dollar and the Russian ruble that trades the next working day.

The attackers are another type of river derivative. These tools have open data that have been set by the trade parties themselves, which can be from Doroka on the road. Once the date is set, the transaction is completed to this date regardless of how the currency values ​​have changed in the meantime.

Options Trading is another type of speculation on the currency exchange. Owners mayThey are not obliged to trade them at the date of the prefix, which comes from the place where this date comes. Because the possibilities are more flexible than other types of flow derivatives, they represent most of the Forex exchange trading and include much greater liquidity in the movement of monetary assets.

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