Interest rates futures

396 views 2 replies
Interest rate futuresbypoonam jainon08 March 2014dear expert, can u plz tell wat do u mean by selling interest futures? In a problem a manager needs funds after 2 months for 4 months and he is expecting interest rates would increase. The solution suggests that since manager is a borrower he must sell interest futures. I m not able to understand the interest rates futures can anyone plz help me wid dis?
Replies (2)
yes dear this contract is for (2*6) type. the manager needs fund at 2 m for next 4 months. think what he will do so he can get what he desire. he should sell at futre to get fund. what he will sell....i.e sele futre. another way. if a person has now stock what he will do save himself from faling expacted interest rates in future. he should hedge interest rate by entering into future contract. i think now might be u can understand.

Assume Mr. A is fund manager and he has sell future.and he needs funds at 2 M for 4 Months. Interpretation: It means the funds manager needs fund at 6 m(from now) to settle the transaction it means what his oresent status... He is a borrower at today and he has to pay the borrowed amount at 6 m hence he is worried about the increase in rates of interest hence he has enter into a sell future contract that will give him a right to received at future from which he will pay the loan in Spot market by doing this he will be hedged from any losses which may occur in future.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
22 June 2026
Accountant

Global Image Technologies Private Limited

New Delhi

MBA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details