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Questions tagged [derivatives]

This tag is to be used for any question on derivatives. It should typically be used in conjuction with the actual instrument being used like futures, options, swaps, etc.

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UK taxation for options and futures trading

I live in UK and I see that there are 2 taxes when trading: CGT to be paid on capital gain and is 18% or 28% depending if you are basic tax payer or not income tax on any interest or dividend ...
mickG's user avatar
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2 votes
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Do I get a second chance if I fail the SGX quiz?

To trade Specified Investment Products (SIPs) such futures, options and structured warrants, I need to pass the SGX quiz. What happens if I fail the quiz? Will I get a second chance? What is the ...
Flux's user avatar
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Do banks need a foreign branch to access a derivatives market (e.g.) London

I would be very interested to know whether banks (e.g. Santander, Deutsche Bank, etc.) need a foreign branch in a country (e.g. UK - London) to access the derivatives market in this country. Would ...
lexjfm's user avatar
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Financial product with high variance, instead of lottery

When I was a kid, our family would once a year play the lottery. We kids talked with our parents about what we would do if we won the jackpot, and whenever we won something small like $100, we would ...
benroth's user avatar
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When LIC will be made available on NSE Future & Options segment?

Lic was listed on BSE/NSE in 2022. Considering its market capitalization when could we expect it to become available on NSE F&O derivatives segment?
user2451016's user avatar
1 vote
2 answers
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Looking for a simple and concrete example of how a CCP default auction works

I am currently studying for the FRM exam, and I come from a mathematics background rather than a finance background. I am learning about CCPs and find them to be an interesting topic, but I find ...
PDS's user avatar
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Do the rewards of custom contract size in OTC derivatives justify the counterparty risk?

If I decide to trade OTC derivatives, I take on counterparty risk. Since the transaction is not overseen by a clearing house/firm, I accept the risk that the counterparty may not honour the obligation....
Victor123's user avatar
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anyone know how to solve this real option problem (derivative securities)?

The purpose of the question is to determine the 'replicating portfolio' of options that is equivalent to the project described. The equation for the profits from the project should be: $25M - 10,000*(...
seamus's user avatar
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Return on a futures contract

If Sam invests $200000 on Futures and takes Futures short position on an index fund whose settlement is one year from now, with the current futures price being $1200. The relation between spot price(S)...
Guest1011's user avatar
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Total return swaps for stock index

Apparently, inverse stock market ETFs (so-called bear ETFs) are constructed by taking positions in total return stock market index swaps, that is, the ETF forms a contract with an investment bank, who ...
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