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Equity derivative: Difference between revisions
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{{anat|eqderiv}} | {{anat|eqderiv}} | ||
An equity derivative is a derivative contract that references the performance of | An equity derivative is a derivative contract that references the performance of equities and equity indices. The technical term for an [[equity derivative]] referencing more than one {{eqderivprov|share}} or {{eqderivprov|Index}} is a {{eqderivprov|Basket}}. | ||
[[Equity derivatives]] are most usually documented under the {{eqdefs}}, and the place you should immediately visit is the [[Equity Derivatives Anatomy]]. | |||
====Types of equity derivative==== | ====Types of equity derivative==== | ||
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*'''{{eqderivprov|Market Disruption}}''': Contingency plans need to be made for what to do where it is not possible to make a valuation on any day on which one might be required (these may occur periodically through the transaction, and may be daily). | *'''{{eqderivprov|Market Disruption}}''': Contingency plans need to be made for what to do where it is not possible to make a valuation on any day on which one might be required (these may occur periodically through the transaction, and may be daily). | ||
*'''{{eqderivprov|Hedging Disruption}}''': where the market is finctioning, but for some reason there are impediments to efficiently or legally hedging an exposure under an equity derivative. | *'''{{eqderivprov|Hedging Disruption}}''': where the market is finctioning, but for some reason there are impediments to efficiently or legally hedging an exposure under an equity derivative. | ||
{{seealso}} | |||
*[[Contract for difference]] | |||
*[[Synthetic prime brokerage]] | |||