Listed Derivatives of Chicago Mer.Exchange
Exchanges
The word ‘listed’ means and implies listed on an exchange. Therefore, this topic specifically relates to those derivatives listed on an exchange.
Forwards vs Futures
The same features seen in a Forward Contract are seen in Futures. Understand the difference between Forward and Futures Contracts
Standardization
This video discusses the role of standardization in exchange traded derivatives
NSE Single Stock Futures
The Futures contracts are created by the exchange with the underlying asset as the basis. The contract is best understood as parameters that are set in a particular way to achieve this economic effect.
Commodities
Let's go through Corn Futures to understand commodity. The Underlying Asset is the Corn.
Margining
In markets, the word margin occurs in several places. In the context of derivatives, margin is akin to ‘security deposit’ payable to mitigate counterparty risk
MTM reconciling
At every MtM, Variation Margin changes hands. The gainer gets the amount; the loser pays the amount. Understand what Mark to Market is all about.
Operations at Exchange
All trades in Listed Derivatives are done at an EXCHANGE. Access to the Exchange is ONLY through Brokers.This video takes you through the basic operations of an Exchange.
Orders, Trades and Positions
Orders happen because the Brokerage cultivates the client through a process. Get to know how orders are processed, trades happen and positions are held.
Margins and MTMs
Understand Margins, MTMs and reconciliation through simple examples
Settlement Closing
Every contract has a default mode of settlement. This video deals with the Settlement process.
Initiating, running and closing positions
On Trade Date a position is opened. It normally runs till expiry, settlement date. Get to know how Initiating, running and closing a position happens.