NISM Series IV: Currency Derivatives Certification Exam Notes

Page 14 Of 100

Go to:

  • Forward Rate Agreements (FRAs): OTC contracts locking in future interest rates.
  • Interest Rate Swaps: Agreements to exchange fixed for floating interest payments.
  • Market Liquidity: Exchange-traded derivatives enhance market liquidity.
  • Price Discovery: Derivatives help establish fair market prices.
  • Risk Transfer: Derivatives allow shifting of interest rate risk to willing parties.

NISM Interest Rate Derivatives

Copyright 2025 - MODELEXAM MODELEXAM®