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Difference between Forwards and Futures Futures are similar to forwards. However, there are certain differences betweentwo. The following are the important points of differences between forwards and futures Futures Standardised contracts. Valuation (or settlement) is done on a daily basis (marked to market basis). Margins are required (requires guarantee deposits from the parties). Transaction isContinue reading “DIFFERENCE BETWEEN FORWARDS & FUTURES”

Futures We have seen that in forward contracts there are some problems such as counter party nsk, illiquidity, lack of centralisation of trading etc. The futures contract has been developed to remove the disadvantages of a forward contract. A futures contract is very similar to a forward contract in all respects except the fact thatContinue reading “FUTURES”

 Steps for opening a Savings or Current Accounts in the name of Customers There are some steps to open an account in the bank. To open an account, we must follow that steps. The relationship between the customer and the banker begins with the opening of an account in the name of the Customer. The stepsContinue reading “OPENING OF SAVINGS AND CURRENT ACCOUNT”

Portfolio Management An investor who prefers to have good equity share investments is faced with the problem of choosing from among 6000 and odd listed companies of BSE. The selection depends upon the risk characteristics of individual shares. certain industries give unimaginable returns and at the same time risk factor is too much. set anContinue reading “PORTFOLIO MANAGEMENT”

An overdraft happens when there isn’t sufficient cash in that frame of mind to cover an exchange or withdrawal, however the bank permits the exchange at any rate. Basically, it’s an expansion of credit from the monetary foundation that is conceded when a record arrives at nothing. The overdraft permits the record holder to keepContinue reading “OVERDRAFT”

Bank FD Bank FDs are issued by Banks. Period of Bank FD range from as little as 7days to up to 10 years. Generally offers relatively lower interest rates than other deposits. Interest is paid out at periodic intervals or cumulatively on maturity if the deposit. Safer. More liquid. Available at any time. Interest willContinue reading “BANK FD v/s CORPORATE FD”

Meaning of Forwards (or Forward Contracts)forward contract (or simply forward) is the simplest and oldest form of derivatives XAforward is an agreement between two parties to buy or sell an asset at a future date at a price agreed today. So, in forward contracts, the date, the price and the quantity are decided at theContinue reading “FORWARDS”

Today Banks operate in a highly globalized, liberalized, privatized and a competitive environment. Banks use information technology for surviving in this environment.Banking all over the world is influenced by information technology, fantastic developments in the technology oftelecommunications and electronic data processing. So banks are experiencing a fast and far reaching renovation. Liberalisation and globalization processContinue reading “E – BANKING”

Insurance is a contract between two parties whereby one party agrees to undertake the risk of another in exchangefor consideration known as premium and promises to pay a fixed sum of money to the other party on happening of an uncertain event (death) or after the expiry of a certain period in case of lifeContinue reading “KINDS OF INSURANCE”

Insurance occupies an important place in the mulüfaceted modern world since risk, which can be insured, has increased very much in every walk of life. Insurance is a form of protection against a possible risk. It is a method which helps in shifting risks to the insurer in consideration of a nominal cost. The aimContinue reading “INSURANCE”