Exchange-traded derivatives: Difference between revisions
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{{a|brokerage|}}[[Exchange-traded derivatives|Exchange-traded derivative]]s are contracts, like [[futures]] and [[options]], that are put into a standardised form and traded on [[exchange]]. To be contrasted with [[over-the-counter]] [[derivatives]] — like [[swap]]s — even though simple varieties of those are now also being cleared [[OTC to CCP]], they are not [[traded on exchange|traded on an exchange]]. | {{a|brokerage|}}[[Exchange-traded derivatives|Exchange-traded derivative]]s are contracts, like [[futures]] and [[options]], that are put into a standardised form and traded on [[exchange]]. To be contrasted with [[over-the-counter]] [[derivatives]] — like [[swap]]s — even though simple varieties of those are now also being cleared [[OTC to CCP]], they are not [[traded on exchange|traded on an exchange]]. | ||
If you want to know more about the economic features of [[Futures|futures]] and [[options]], go see - this present article is about the more tedious business of how they are [[execution|executed]], [[Give-up|given up]] and [[Clearing|cleared]]. | If you want to know more about the economic features of [[Futures|futures]] and [[options]], go see - this present article is about the more [[tedious]] business of how they are [[execution|executed]], [[Give-up|given up]] and [[Clearing|cleared]]. | ||
So tedious, in fact, that no-one has summoned up the fortitude to write it just yet. If you feel it would be worthwhile, do let us know. | |||
{{ | ===Clearing and execution=== | ||
The life-stage of a futures contracts boils down to two phases: execution and clearing. Execution is the process of buying or selling an ETD; for this an executing broker is paid a commission. clearing is the business of managing your contract during its life; handling margin requirements and that sort of thing. The main risk | |||
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*[[Futures]] | |||
Latest revision as of 11:19, 8 December 2022
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Brokerage Anatomy™
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Exchange-traded derivatives are contracts, like futures and options, that are put into a standardised form and traded on exchange. To be contrasted with over-the-counter derivatives — like swaps — even though simple varieties of those are now also being cleared OTC to CCP, they are not traded on an exchange.
If you want to know more about the economic features of futures and options, go see - this present article is about the more tedious business of how they are executed, given up and cleared.
So tedious, in fact, that no-one has summoned up the fortitude to write it just yet. If you feel it would be worthwhile, do let us know.
Clearing and execution
The life-stage of a futures contracts boils down to two phases: execution and clearing. Execution is the process of buying or selling an ETD; for this an executing broker is paid a commission. clearing is the business of managing your contract during its life; handling margin requirements and that sort of thing. The main risk