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sir ive watched your lectures up until the baby example of interest rate futures(your lectures are outstanding btw) and i havent as yet calculation through ticks, now ive heard that calculation should always be in ticks.
firstly , what basically are ticks? and is it mandatory to calculate in ticks in exam?
secondly, are ticks both in forex and interest rate risk both?
But if you watch all of the lectures on foreign exchange risk, then I certainly do explain ticks (and they work in the same way for interest rate risk as well) !!!
One tick is the smallest movement there can be, so for exchange rate futures it is equal to 0.0001 and for interest rate futures it is 0.01%
Instead of saying (for example) that the price has moved by 0.0005 (in the case of exchange rate futures), in practice it is rather easier to say that it has moved by 5 ticks!
It is not mandatory to use ticks in the exam – I never do. It is whatever you find easier.
Oh thanks sir! Doing without ticks is quite efficient and easy ! Have benefitted alot from your lectures must say!!
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