NISM Series IV: Currency Derivatives Certification Exam Notes

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  • OTC Derivatives: Bilateral contracts, customizable but less transparent.
  • Exchange-Traded Derivatives: Standardized, traded on exchanges, highly transparent.
  • OTC vs. Exchange-Traded: OTC offers flexibility; exchange-traded ensures liquidity and standardization.
  • Interest Rate Futures: Contracts to buy/sell interest rate instruments at a future date.
  • Interest Rate Options: Rights to buy/sell interest rate instruments at a specified price.

NISM Interest Rate Derivatives

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