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A forward contract is a private and customizable contract that needs to be settled at the end of the agreement and is traded over the counter.
A futures contract has standardized terms and is traded on an stock or commodity exchange, where prices are settled on a daily basis until the end of the contract.
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How do you calculate a gain in stock price?
The % gain in a stocks price is calculated as the difference between the current market price and the price at which you bought divided by hundred. Ex: Assuming you bought shares of Google Inc same day last year for $100 and currently it is trading at $155. which means gain % is (155-100)/100 which is 55%
What is the difference between definition and explain?
a definition is brieflysummarizingsomething, so say define competitor you would say abusiness rival in the same market for products or services offered by an organisation but explaining you have to put ofr detail, so explain how hitler came to power you would have to go on further detail and apply yourknowledge. Basically definition is brief and short and explain you apply your knowledge and give detail
What is the difference between a stop and a stop-limit order?
The stop limit order combines the characteristics of a stop order and a limit order. A basic stop order will buy/sell your security at the market price once your stop has been reached or passed. A stop limit order will buy/sell the security at a specified price once the stop has been reached or passed. If you use a stop limit, and your limit is too high/low your order may not get filled which will negate the purpose of putting the stop on in the first place. I tend to stick with stop orders if I am trying to protect a loss on a security.
What are the 6 factors that influence agriculture?
Location, Climate, Raw Materials, Labor, Market and Transportation
What group market sector has the greatest percentage of convention center utilization?
exposition and trade shows
Difference between forward market and spot market?
Spot market is also known as "cash market" where the commodities are sell on the current price or the spot rate and deliver immediately, where as in case of forward market, market dealing with commodities for future delivery at prices agreed upon today (date of making the contract).
Difference between futures market and forward market?
A Futures market is a forward market that trades through a centralised exchange, just like most stocks do. The classic forward market occurs as an Over-The-Counter (OTC) trade, rather than through an exchange.
What are the differences between a forward contract a future contract and options?
1) forward contract is not standardised one..it is only traded in OTC(over the counter) where as future contract is a standardised one it is traded in Secondary Market
What are the trading mechanism of forward market?
if the market goes up sell spot buy in future market if market goes down buy spot sell in future market
Forward market hedge?
forward market hedging is the way of making profit by predicting contract in advance to buy and sell of goods in the future.
What is forward rate in foreign exchange market?
Transaction in future date by forward contract(future delivery) to purchase/sell foreign exchange at prevailing rate.
What is the difference between local market and national market explain with example?
what is the difference between local market and national market
What is the difference between industry and market?
what is the differences between Industry and Market
When you choose future contract over forward contract?
When there isn't an active market for the forward contract. Generally, Futures contracts have a much more active open market than forward contracts and have alot more choice in terms of expiration months than forward contracts.
What is the difference between in the market and on the market?
In the market is where you do your buying and selling. On the market is where you put something that is for sale.
What is the difference between market and floating market?
a floating market floats but an market dont float
What is the difference between dealer and stock markets?
differance between stock market and dealer market?
