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sir there was a questions in pre december mock
carlos purchases otc derivative….will it be primary money market or secondary money market
the answer was primary money market
my doubt was if the question asks about the buying or selling of currency future… then it will be secondary money market …right sir??carlos purchases otc derivative….will it be primary money market or secondary money market
Primary markets deal in new issues of loanable funds
An over-the-counter (OTC) derivative is a financial contract that does not trade on an asset exchange, and which can be tailored to each party’s needs.
So it is primary
Yes….
Futures began to trade for commodities such as wheat and gold and over the years have expanded to include financial futures such as futures on Treasury securities . They are standardised contract terms which allow for a very liquid secondary market.
got it sir
kindly just confirm the below understanding of mine
primary money market
forward exchange contract(cannot be traded)
otc options
forward rate agreementsecondary money market
currency futures
exchange traded optionsIn the world of foreign exchange (Forex) trading, you are correct, there are two main types of markets that traders can participate in: over-the-counter (OTC) Forex and secondary Forex.
In terms of market share, OTC Forex is far and away the dominant player, with a market share of approximately 95%.
This is because the OTC Forex market is global, decentralised, and accessible to virtually anyone with a computer or smartphone.
On the other hand, the secondary Forex market consists of a more limited range of participants, including banks, hedge funds, and other financial institutions.
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