What's New :
What's New :

info@iasscore.in

8448496262

हिन्दी

CURRENT AFFAIRS FOR UPSC IAS

Exchange Traded Currency Derivative

facebook sharing button
telegram sharing button
whatsapp sharing button
twitter sharing button
twitter sharing button Copy

Published: 5th Apr, 2024

Context

A notification from the RBI on hedging of foreign currency risk caused a stir among market as it restricted the use of exchange traded currency derivative.

What is ETD?

  • An Exchange Traded Derivative is a standardised financial contract that is traded on stock exchanges in a regulated manner.
  • They are subject to the rules drafted by market regulators such as the Securities and Exchange Board of India (SEBI).

Fact Box: Derivatives

  • Derivatives are financial contracts that derive their values from the price fluctuations of their underlying assets such as stocks, currency, bonds, commodities etc.
  • Essentially, there are two types of derivatives;
    • Exchange Traded Derivatives (ETDs): It is subject to standardised terms and conditions, hence, traded in the stock exchanges.
    • Over the Counter (OTC) derivative: It is traded between private counter-parties, in the absence of a formal intermediary

More Articles

$300 Billion Climate Deal
Non-Banking Financial Company (NBFC)
Pradhan Mantri Vidyalaxmi Scheme
NitiAayog Recommends Including Coking Coal in Critical Minerals List
Oreshnik, Russia’s New Nuclear-Capable Hypersonic Missile
Ranthambore Tiger Reserve
X

Verifying, please be patient.

Our Center

Delhi (Karol Bagh) Centre

GS SCORE, Second Floor, Metro Tower, 1B, Pusa Road,
Karol Bagh, New Delhi - 110005 (Beside Karol Bagh
Metro Station Gate No. 8)

Email: info@iasscore.in

Phone: +91 8448496262

COURSES

TOPPER'S CORNER

RESOURCES

STATE PCS

ACTIVITY

POLICY

Still Have Questions?

84484 96262
Enquire Now