Futures contracts

In finance, futures contracts have traditionally been used for risk management, since they can be used by two counterparts that wish to fix a price or a rate today for a transaction that will take place at a future date. Nowadays, standardized futures contracts are traded by investors. Unlike forward contracts, futures contracts tend to…

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Forward contract

In finance, a forward contract is a non-standardized contract between two parties that agree to carry out a specific transaction at a future date. The transaction will consists of the party in the long position purchasing a specific asset from the other party, for a predetermined price (the delivery price). The party that is obliged…

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Warrants – An introduction

In finance, a classic warrant is a security that gives the holder a right but not an obligation to purchase the underlying stock at a fixed price, before the warrant has expired. A European-style classic warrant can only be exercised (i.e. used to carry out the purchase) on the expiration date. An American-style classic warrant…

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