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I am finding it difficult to know when we sell futures and when we buy it, please also help me how I will know if it is a put options and call options, in interest and currency derivatives. Thanks
The answers to all of your questions are explained in detail in our free lectures on foreign exchange risk and interest rate risk.
I am sorry, but I cannot possibly type out all of the lectures here. You really should watch them – they do not cost anything!
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i use lock in rate to calculate closing future but the problem is that i don’t know when to add or subtract the remaining basis to the opening future price.
The way to decide is this:
The futures price and the spot price will get closer together during the life of the future.
So the lock-in rate will always be between the current spot and the current futures price. So add or subtract – whichever makes the lock-in rate between the two.
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