The most regularly traded structure in the inflation-linked swaps market, and particularly in the inter-dealer market, is the zero coupon inflation swap. One counterparty agrees to pay the cumulative percentage increase in the price index over the tenor of the swap (with some lag on the reference index, similar to cash securities), and the other pays a compounded fixed rate. … [Read more...]
Inflation Swap in Stock Market
An inflation swap is the linear form of an inflation derivative, an over-the-counter and exchange-traded derivatives that is used to transfer inflation risk from one counterparty to another. There are three main types of inflation swap. In a standard interbank inflation-linked swap, or zero-coupon inflation-linked swap, cash flow is exchanged on the maturity date. This swap … [Read more...]
Forex Swap
A Forex swap is a type of foreign exchange swap consisting of two parts, completed at the same time. One part is a foreign exchange spot trade, and the other is a foreign exchange forward transaction. Forex swaps are most often used by investors for either hedging or speculation purposes. In finance, a forex swap (or FX swap) is a simultaneous purchase and sale of identical … [Read more...]
Equity Swap
An Equity Swap is an exchange of cash flows between two parties that allows each party to diversify its income, while still holding its original assets. The two sets of nominally equal cash flows are exchanged as per the terms of the swap, which may involve an equity-based cash flow that is traded for a fixed-income cash flow. Besides diversification and tax benefits, equity … [Read more...]
Free Stock Tips for 4th March 2010
The Various – Daily Stock Recommendation Given by the various analysts and Stock Brokers are : Nectar Lifesciences Ltd - Daily stock recommendation 04-03-2010 Source Action Tip Period Target Price (Rs.) Anil Singhvi Buy, stop loss Rs 36 - 39.00 Opto Circuits India Ltd. - Daily stock recommendation 04-03-2010 Source Action Tip Period … [Read more...]