Trading News

Weather derivatives are one type of derivative. They allow companies and governments to hedge their risks associated with adverse or unexpected weather conditions as part of an overall risk management strategy. For instance, a company that produces food agricultural commodities may want to enter into a weather derivative contract to protect itself from the risk […]

A property derivative is underwritten by an underlying real estate asset. Individual real estate assets are illiquid and hard to price accurately because they sell infrequently. Because of this, it’s common for property derivatives to be based on property indexes. Real estate property indexes take into account aggregate information on prices within a certain city or multiple cities. This, […]

Inflation derivatives are a type of exotic derivative, which give the holder the right, but not the obligation, to receive a payment based on the rate of inflation during a certain period of time. This type of derivative can be used by investors as a hedge against rising prices. The inflation derivative is an OTC […]

Freight derivatives include container freight swap agreements, container freight derivatives, physical deliverable freight derivatives, forward freight agreements (FFA), and other derivatives based on these. Forward Freight Agreement (FFA) A Forward Freight Agreement, or FFA, is a contract between two parties to buy or sell goods at a future date and price. FFAs are often used to hedge […]

An energy derivative is a derivative based on an underlying energy asset or product, such as crude oil, natural gas, gasoline, electricity, or other energy products. Energy derivatives can exist in the forms of futures and options or OTC derivatives such as swaps, forwards, and other types of options. Those who participate in the energy derivatives markets […]

Variance swaps are an OTC financial derivative used to hedge risks and/or speculate on a movement in the price of a certain asset or index, volatility, interest rate, or exchange rate. One leg of the swap pays an amount based on the realized variance of the price changes (as it pertains to the underlying asset, […]

China’s economy will naturally slow over time. Its population is already older. Its productivity will still rise faster than western developed economies as plays catch-up and its per-capita incomes get more in line. But a lot of growth that was fueled by credit will start to slow. Its slowdown is eliciting familiar warnings that, as […]

The metaverse and virtual reality (VR) space is heating up. As social media and gaming increasingly merge, more companies are building their own AR, VR, AI, and metaverse platforms to take advantage. In this article, we look at the best stocks in the metaverse and virtual reality space. Investing in VR and the metaverse can […]

IG Group has agreed to sell its holdings in the North American Derivatives Exchange, Inc (NADEX) and Small Exchange, Inc to Crypto.com. The broker’s shareholdings in the two companies are worth approximately $216 million, with IG owning Nadex and holding 39% of Small Exchange. “The Deal Allows Us To Sharpen Our Focus” The London-based and […]

Turkey’s central bank cut rates by 100bps in November 2021, which was expected by the market and Bloomberg consensus. However, given Turkey’s economics fundamentals, the rates cuts were not necessary, leading the country to another currency crisis.     Why did markets throw a tantrum? They didn’t want the CBRT (Turkey’s central bank) to cut […]