After a gap of six years, the National Stock Exchange (NSE) of India re-launched trading in Interest Rate Futures. This will give the investor an opportunity to speculate and trade with these advanced financial instruments.
Interest Rate Futures allow institutions to hedge risk associated with interest rate fluctuations. They can reduce the risk associated with cash flows resulting from underlying assets such as home loans, long term fixed deposits etc.
However, in India, the underlying asset on which the interest rate future is based on is a 10 year notional coupon bearing government security. Have a look at this small series that came in ET, which talks about few things one has to consider before trading in interest rate futures.
Tuesday, September 15, 2009
Now Interest Rate Futures can be traded in National Stock Exchange
Posted by Sujith C Email this!
Categories: Investments, Stock Markets
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2 comments:
I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Patricia
http://forextradin-g.net
Hope the National Stock Exchange(NSE)new trading "Interest Rate Future" policy will successful so that investor can easily speculate & trade by these tools. Alliance & Leicester Cashback
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