Category: Financial Markets and Products

In this video from FRM Part 1 curriculum, we explain various trading order types, distinguish between them and explore their impact.

In this short video from FRM Part 1, we explore (rather closely and in detail) the reason why futures and forward prices differ.

In this short video from the FRM Part 1 curriculum, we explore this concept of “Tailing the Hedge”. It is defined as the reduction in the quantity of futures based hedge required, if you were to take into account the daily settlement feature.

In this video from FRM Part 1, we explore how speculators differ from hedgers and how the former can use derivatives to monetise their views about market variables.

In this video from FRM Part 1, we explore an alternative approach for valuing interest rate swaps – the offsetting swap method. We make ourselves familiar with the steps in this approach and then apply it to a simple solved example.

In this short video from FRM Part 1 curriculum, we derive the value of a Floating Rate Note (FRN) – both on a coupon / reset date as between coupon dates.

In this short video from FRM Part 1 curriculum, we take a look at a very important risk that you’ll be exposed to if you hedge using futures – basis risk.

In this short video, we take an example of valuing a Cross Currency Swap, and perform this valuation via two approaches: the Bond Method and the Fx Forward Method.

In this short video, we take an example of valuing an Interest Rate Swap, and perform this valuation via two approaches: the Bond Method and the FRA Method.