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May 15, 2016 at 6:22 pm
Hello Sir, thank you for this superb lecture on Futures, really you are a gem in making complex things so simple. I have a question regarding the selling of futures if exchange rates fall. I understand that the selling is just an intangible operation because the speculator has nothing to sell, but on what basis will he have a deposit if he has nothing to sell. I mean if they are buying $100K futures, then they can Depo say $30K, but if they are selling suppose $100K again is it the same? ( That is $30K?) Also, the depo should it be in the form of cash, or can it be anything else like lien on physical assets or financial assets (leases etc).
Moreover in terms of formalities, (not sure if this is examinable) is it as simple as a phone call? i mean if we are dealing with so much money, there’s bound to be some paper formalities? in case of lawsuit ?
Thank u once again for your great support
John Moffat says
May 16, 2016 at 7:52 am
There will be a deposit whether they are buying or selling (to protect the dealer against the possibility of the person doing the selling or buying making a loss on the deal).
The deposit is in cash.
There will be paperwork initially to ‘register’ with the dealer, but from then on it is as simple as a phone call.
May 18, 2016 at 4:33 pm
ok thank u
May 18, 2016 at 8:06 pm
You are welcome 🙂
December 15, 2015 at 9:56 pm
Sorry to disturb you.
When I click Part C it comes up with Part E.
Can you please sort it
December 16, 2015 at 2:24 pm
please check again now
December 15, 2015 at 7:02 pm
sir i have bpp book session of june 2010 should i use in march exam or not..???
December 16, 2015 at 8:21 am
In future please ask this kind of question in the Ask the Tutor Forum, and not as a comment on a lecture.
You should get a new books – the syllabus and the format of the exam has changed since 2010.
If you are watching our lectures (they are a complete course for Paper F9 and cover everything needed to pass the exam) then you do not need a Study Text.
The only book you should get is a Revision Kit, because they contain lots of exam standard questions to practice on, and practice is vital.
First download our free Study Guide, which has links to all the lectures and details of the best past exam questions to use for practice.
February 11, 2015 at 12:18 am
I jst repeating one of OT fellow’s question
”can u plz explain how does the person can sell futures now and buy later when he finds that the future is gonna down i dont understand that bit.
Thanks in advance”?
i also really didnt understand this bit as well? and who r the dealers r? what profits belongs to them by buying nd selling the future on behalf us? how does it work in real life? would u mind plz to talk more details about it ?
April 5, 2014 at 2:11 am
can u plz explain how does the person can sell futures now and buy later when he finds that the future is gonna down i dont understand that bit.
Thanks in advance
November 20, 2013 at 9:32 am
Hi ,John.I have a question about the last step in money market hedging(EXAMPLE 7 about future payment).Why we need to borrow local currency in 3 months?I mean if we borrow the money in 2 months ,we still can get the money we want(4860204 pounds)now and we don’t have to pay extre interest. THX
August 27, 2013 at 8:31 pm
Thank you very much Joe for this breakdown and it is a very good lecture. You have brought a very good understanding on how Currency Futures can be used in hedghing the risk, but I have TWO questions relating to Currency Futures and are as follows:
1. Does it mean that the dealer will have to exercise (sell) the futures by using the exchange rate (Fixed Rate) agreed when the speculor (Financial Manager) bought them or the dealer will have to use the current spot at that time, i.e the spot rate available at the day at which the futures matures?
2. As you have said that the transaction should be left at risk, does it mean that the dealer will give you the fixed rate to sell the futures or you will depend on the movement of the exhange rates i.e spot rate at that day?
Thanks very much Joe, my prayer goes to you, to your family and to Opentuition as a whole.
July 28, 2013 at 9:18 pm
john & admin.. thanks a alot.. so nice. plz help us in p4 also by some new video lectures.
May 2, 2013 at 7:48 pm
Strange… I cannot get to Part (e) Lecture! Please help.
October 25, 2012 at 7:44 am
Very good and detailed information provided. Thumbs up to the lecturer and OpenTuition team! 🙂
October 8, 2012 at 1:52 pm
thanks for this lecture. it was not clear in study texts.
June 14, 2012 at 2:36 pm
Could you give more details on the unilever deal? I’ve looked it up but could not find anything. Thanks!
May 22, 2012 at 5:05 pm
i want to do this business…i think its realy good to earn money….
June 14, 2012 at 2:34 pm
@jewel086, You and kerviel both.
I think you’re being a bit too ignorant about it. John has pointed out the dangers in this area.
November 19, 2011 at 12:19 am
I could not make head or tail of this topic from the text book….with this lecture, i’m simply loving it…..!!!! Thanks a lot.
October 31, 2011 at 11:52 pm
THANK YOU ADMIN!!!!! 😀 😀 😀
October 31, 2011 at 11:26 pm
it should now work OK 🙂
October 31, 2011 at 9:58 pm
Yes, it is only you,
the person above who posted the comment.. watched the video just fine
October 31, 2011 at 10:37 pm
Strange, every time I click the Part c video, it redirects to Part e. :-/
October 31, 2011 at 6:48 pm
Is it just me or is part c video missing? :-/
October 28, 2011 at 1:24 pm
Very good indeed! I’ve to move on to part d. Thanks John the Tutor.
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