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.

12 questions with no upvoted or accepted answers
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132 views

Is the market maker for a particular stock also the market maker for that stock's options?

Is the market maker for a particular stock also the market maker for that stock's options? ... or is it a different person entirely that makes the options markets for that stock? If it's 2 different ...
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0answers
1k views

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 ...
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0answers
632 views

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 ...
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0answers
53 views

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 ...
2
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0answers
130 views

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 ...
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0answers
55 views

What does it mean to find the Present Value of a FRA?

What does it mean when the present value of a forward rate agreement is calculated? Is this a price that the owner of the FRA can sell it for? Thanks for the help.
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0answers
39 views

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....
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34 views

Are there any trading products which track inflation?

Are there any derivative trading products that track inflation very well? I was thinking for example that there would be something like consumer price index derivatives. Or maybe derivatives for some ...
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50 views

Futures Calendar Spread Quote Convention

Hoping to get this question answered on SExch so I don't have to ask someone on the Desk and betray my ignorance. Trading a Calendar Spread in equity derivatives involves selling/buying the near/far ...
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49 views

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)...
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1answer
71 views

Do compound options trade on exchanges or do they only trade over-the-counter?

Do options on options (i.e. compound options) trade on derivatives exchanges? Or are they only traded over-the-counter? If they do trade on exchanges, which exchanges do they trade on?
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47 views

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 ...