However, in order to maintain the high level of discourse weve all come to value and expect, please keep the following criteria in mind: Enrich the conversation, stay focused and on track.
The buyer (long position) of a Bond Future is obliged to buy the underlying Bond at the agreed price on expiry of the future.
This contract must be honored whether the price of the bonds goes to 80 or 125 of par.
Qualifying factors, futures Contracts are subject to margining, which means that you would have to pay a deposit upfront to protect both parties should either party not hold up its part of the agreement.It can be influenced by general market factors or changes in interest rates.However, this form of derivative can be risky because it involves trading at a future date with only current information.That is, Investor A may make a contract with Investor B in which A agrees to buy a certain number of B's bonds at 90 of their par value on January.Dont Monopolize the Conversation.
Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.
No limits apply to individuals, foreigners or corporate entities.We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other.Register as a client with an finn et knulle bdude i grand blanc authorised JSE Interest Rate and Currency Derivatives member, deposit the required initial margin and sell or buy according to your needs.Include punctuation and upper and lower cases.Hedgers use Bond Futures to protect an existing portfolio against adverse interest rate movements.Hedgers have a real interest in the underlying Spot Bonds and use Futures as a way of preserving their value.Use standard writing style.Breaking down 'Bond Futures bond contracts naughty dato apk are standardized, and are overseen by a regulatory agency that ensures a certain level of equality and consistency.
You do not pay the principal or hold the physical Bond unless the future is held to expiry.