Glossary Terms

06

Dec'17

Exchange-traded derivatives

  Exchange traded derivative products are the ones that are traded on an exchange. The other type of derivatives is …

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06

Dec'17

Currency swaps

A currency swap is a foreign currency contract whereby the buyer and seller exchange equal initial principal amounts of two …

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06

Dec'17

Currency option

  A currency options contract is a type of currency derivative which gives the buyer/holder of the contract the right …

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06

Dec'17

Currency futures

  A currency future contract is an agreement to buy or sell a currency under an organized exchange i.e. the …

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06

Dec'17

Currency forwards

  A currency forward contract is an agreement between two parties to exchange (buy/sell) an agreed quantity of a currency …

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06

Dec'17

Hedging or Currency Hedging

  Currency hedging is the act of entering into a financial contract in order to protect against unexpected, expected or …

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06

Dec'17

Currency speculation

  Currency speculation is the activity where one buys a foreign currency, not because he/she needs to pay for an …

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06

Dec'17

Foreign Exchange Risk

  Foreign-exchange risk is the risk that an asset or investment denominated in a foreign currency will lose value as a result …

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06

Dec'17

Digressive Tax

  Digressive tax is a mix of between the progressive tax and proportional tax. In the case of digressive tax, …

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06

Dec'17

Proportional tax

  A proportional tax is the one where the tax rate remains in the same proportion whatever may be the …

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