TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING"

Transcription

1 TECHNICAL ANALYSIS IN FX OPTIONS FOR DIRECTIONAL FX TRADING Tim McCullough July 2014

2 Contents Summary of trading single FX options versus FX spot and forwards Summary of trading FX risk reversals as proxy for FX forwards (for hedging or speculation) Implied volatility as pricing benchmark for FX options and risk reversals Comparison of non-rational, trending nature of risk-reversals versus spot Use of technical analysis in risk reversals for additional trading signals in underlying spot 2

3 Trading FX via FX forwards versus FX options GBP/USD example Spot: month forward: (spot month forward points ) Buy 3 month GBP/USD FX forward: contract to buy GBP / sell USD at months from now No flexibility but no premium payable Buy 3 month GBP/USD GBP call option Right to buy GBP at in 3 months time, but can walk away if GBP/USD < at expiry Pay upfront premium, equivalent to GBP/USD Profitable if GBP/USD > at expiry ( premium paid) Sell 3 month GBP/USD GBP put option Obliged to buy GBP at in 3 months time, if GBP/USD < at expiry Receive upfront premium, equivalent to GBP/USD Profitable if GBP/USD > at expiry ( premium received) 3

4 Payoff Profiles: FX forward versus FX call & put options GBP/USD P & L GBP/USD at expiry GBP/USD 0.15P & L GBP/USD forward Unlimited P & L around forward level Buy GBP call option Unlimited profit > breakeven level Limited loss = GBP/USD premium paid GBP/USD at expiry GBP/USD 0.05 P & L Sell GBP put option Limited profit = GBP/USD premium received Unlimited loss < breakeven level GBP/USD at expiry 4

5 Trading FX risk reversals as proxy for FX forwards GBP/USD example Spot: month forward: (spot month forward points ) Buy 3 month GBP/USD GBP call option (25 delta) Right to buy GBP at in 3 months time, but can walk away if GBP/USD < at expiry Pay upfront premium, equivalent to GBP/USD and simultaneously Sell 3 month GBP/USD GBP put option (25 delta) Obliged to buy GBP at in 3 months time, if GBP/USD < at expiry Receive upfront premium, equivalent to GBP/USD Net premium = zero (as in FX forward) 5

6 Trading FX risk reversals as proxy for FX forwards GBP/USD P & L GBP/USD at expiry Unlimited profit if GBP/USD > at expiry Unlimited loss if GBP/USD < at expiry Zero profit or loss if GBP/USD between at expiry 6

7 Implied volatility FX options mainly traded on over-the-counter basis Fully customized, unlike exchange-traded options How to assess relative value of similar options with varying parameters? Benchmark feature of option pricing is implied volatility Quoted as anticipated % volatility, on annualized basis Options traders price and quote vanilla options (ie non-exotic) in terms of vol Out-of-the-money options quoted using benchmark of 25 delta implied volatility 7

8 GBP/USD spot Latest: (weekly) Source: Bloomberg LP 8

9 GBP/USD 3 month implied volatility (at-the-money) Latest: 5.50% (weekly) Source: Bloomberg LP 9

10 GBP/USD 3 month 25 delta risk reversals Latest: -0.37% (ie GBP 25 delta call is 0.37% cheaper than equivalent GBP 25 delta put) (weekly) Source: Bloomberg LP 10

11 Value Opportunities GBP/USD fell heavily from July and particularly October 2008 until low in January 2009 Implied volatility for at-the-money options predictably rose sharply to 25% peak in November delta risk reversal offered cheaper downside protection than at-the-money options in late 2008 But risk reversal then offered much cheaper upside cost versus underlying FX forward in 2009 recovery 25 delta calls 2.0% 3.0% cheaper than equivalent 25 delta puts in most of Q delta risk reversals offered cheaper GBP calls v GBP puts until June 2009, before spot 1.70 peak Offered choice of lower GB call strike, lower GBP put strike or upfront net premium gain 11

12 Charting Opportunities Major part of GBP/USD recovery since 2009 started in May 2010 Few obvious charting signals in GBP/USD chart of new, gradually rising trend 25 delta risk reversal chart identified end of major trend exhaustion in May 2010 (-4.0%) TD Sequential 13 on monthly chart signalled end of trend decline since +0.70% peak (December 2006) Risk reversals often trade at variance from underlying spot market Often used aggressively to hedge highly mathematical exposures from exotic option structures Technical analysis identifies extreme risk reversal moves and potential implications for spot market 12

13 GBP/USD spot Latest: Source: Bloomberg LP 13

14 GBP/USD 3 month implied volatility (at-the-money) Latest: 5.50% (weekly) Source: Bloomberg LP 14

15 GBP/USD 3 month 25 delta risk reversals Latest: -0.37% (ie GBP 25 delta call is 0.37% cheaper than equivalent GBP 25 delta put) (monthly) Source: Bloomberg LP 15

16 DISCLAIMER This presentation does not constitute or imply an offer or commitment whatsoever on the part of Lloyds Bank plc. Any such offer may only be made after the negotiation of satisfactory documentation and only after appropriate credit authority has been obtained. The pricing discussed herein is based on our view of current market conditions and is for discussion purposes only. This presentation and all ancillary documents relating to it (together the "Presentation") was prepared by Lloyds Bank exclusively for you for the purpose of analysing certain potential transactions. The Presentation is being made available on a strictly confidential basis to you and is intended only for the internal use of authorised recipients ( Recipients ) and no part of it may be disclosed to any third party. This Presentation and the information contained herein are the property of Lloyds Bank. Recipients are hereby notified that photocopying, scanning, or any other form of reproduction, or distribution - in whole or in part - to any other person at any time is strictly prohibited without the prior written consent of Lloyds Bank. The information in this Presentation reflects prevailing conditions and our judgment as of this date, all of which are subject to change or amendment without notice and the delivery of such amended information at any time does not imply that the information (whether amended or not) contained in this Presentation is correct as of any time subsequent to its date. Whilst Lloyds Bank have exercised reasonable care in preparing this presentation and any views or information expressed or presented are based on sources they believe to be accurate and reliable, neither Lloyds Bank, nor any of their officers, servants, agents, employees or advisors make any representation or warranty, express or implied, as to the fairness, accuracy, adequacy, completeness or correctness of such information, nor as to the achievement or reasonableness of any projections, targets, estimates, or forecasts and nothing in this Presentation should be relied upon as a promise or representation as to the future. Neither Lloyds Bank nor any of their officers, servants, agents, employees or advisors or any affiliate or any person connected with them accepts any liability whatsoever for any direct, indirect or consequential damages or losses arising from any use of this Presentation or its contents or otherwise arising in connection therewith. Lloyds Bank undertakes no obligation to update or correct any information contained herein or otherwise to advise as to any future changes to it. Applicable tax, accounting and legal considerations are subject to change and in all cases independent professional advice should be sought in those areas. This Presentation is provided for information purposes only: there has been no independent verification of the contents of this Presentation. It does not constitute or contain investment advice. It is not and shall not be construed as an offer, invitation, recommendation or solicitation to sell, issue, purchase or subscribe for any securities in any jurisdiction or to enter into any transaction. It is not and shall not be construed as an offer to arrange, underwrite, finance, purchase or sell any security, financial instrument, assets, business, or otherwise provide monies to any party. Such offers may only be provided in writing after satisfactory legal, financial, tax, accounting and commercial due diligence, as well as approval from the relevant business and credit committees of Lloyds Bank and/or their affiliates. The information contained in this Presentation is in summary form for the convenience of presentation and may therefore not be complete. Products and services that may be referenced in the Presentation may be provided through affiliates of Lloyds Bank or any person connected with them. Lloyds Bank and their affiliates prohibits employees from offering a favourable research rating or specific price target or changing a rating or target to get a mandate and Lloyds Bank and their affiliates prohibit research analysts from being compensated for involvement in investment banking transactions, except to the extent that such participation is intended to benefit investor clients. Lloyds Bank, their affiliates, their respective directors or officers or persons connected with them may have an interest in any financial instrument mentioned in this Presentation. Lloyds Bank is a trading name of Lloyds Bank plc and Bank of Scotland plc. Lloyds Bank plc. Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no Bank of Scotland plc. Registered Office: The Mound, Edinburgh EH1 1YZ. Registered in Scotland no. SC Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration numbers and respectively. 16

17

} } Global Markets. Currency options. Currency options. Introduction. Options contracts. Types of options contracts

} } Global Markets. Currency options. Currency options. Introduction. Options contracts. Types of options contracts Global Markets Currency options Currency options Introduction Currency options have gained acceptance as invaluable tools in managing foreign exchange risk. They are extensively used and bring a much wider

More information

FX Option Solutions. FX Hedging & Investments

FX Option Solutions. FX Hedging & Investments FX Option Solutions FX Hedging & Investments Contents 1. Liability side 2 Case Study I FX Hedging Case Study II FX Hedging 2. Asset side 30 FX Deposits 1 1. Liability side Case Study I FX Hedging Long

More information

FX Strategies. In the Low Yield Environment. Eddie Wang Head of FX Structuring, Asia. Hong Kong October 2010

FX Strategies. In the Low Yield Environment. Eddie Wang Head of FX Structuring, Asia. Hong Kong October 2010 FX Strategies In the Low Yield Environment Eddie Wang Head of FX Structuring, Asia Hong Kong October 2010 Contents 01 Key Trends 02 FX Hedging Strategies 03 FX Investment Strategies SECTION 01 Key Trends

More information

DAILY TECHNICAL REPORT

DAILY TECHNICAL REPORT RESEARCH TEAM DAILY TECHNICAL REPORT DISCLAIMER & DISCLOSURES Please read the disclaimer and the disclosures which can be found at the end of this report EUR / USD Moving higher. EUR/USD has been range-bound

More information

You are authorised to view and download one copy to a local hard drive or disk, print and make copies of such printouts, provided that:

You are authorised to view and download one copy to a local hard drive or disk, print and make copies of such printouts, provided that: Terms of Use The Standard Bank of South Africa Limited ( Standard Bank ) maintains this demonstration trading platform (the "Demo Trading Platform") and the virtual services/products ("Virtual Services")

More information

Bond markets vote for global recovery

Bond markets vote for global recovery Bond markets vote for global recovery Weekly Market View 11 May 2015 1 % Euro area recovery, oil rebound lead to bond sell-off German bund yields recovered from record low levels, leading a surge in global

More information

Tetragon Financial Group Limited ( TFG )

Tetragon Financial Group Limited ( TFG ) Tetragon Financial Group Limited ( TFG ) 12 August 2014 THE INFORMATION CONTAINED HEREIN DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITY OF TFG. THIS INFORMATION

More information

Commodities not finding much traction despite USD weakness

Commodities not finding much traction despite USD weakness Commodities not finding much traction despite USD weakness Commodities continued to show weakness into the second week of 2013 despite rising stock markets and a falling US dollar. Investors are generally

More information

Quant Picks United Breweries

Quant Picks United Breweries October 6, 2015 Quant Picks United Breweries Research Analyst Amit Gupta amit.gup@icicisecurities.com Raj Deepak Singh rajdeepak.singh@icicisecurities.com Azeem Ahmad azeem.ahmad@icicisecurities.com i

More information

Why ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group

Why ECB QE is Negative for Commodities. Investment Research & Advisory. Deltec International Group Atul Lele alele@deltecinv.com +1 242 302 4135 David Munoz dmunoz@deltecinv.com +1 242 302 4106 David Frazer dfrazer@deltecinv.com +1 242 302 4156 Why ECB QE is Negative for Commodities Recent ECB Quantitative

More information

The Merchant Securities FTSE 100. Hindsight II Note PRIVATE CLIENT ADVISORY

The Merchant Securities FTSE 100. Hindsight II Note PRIVATE CLIENT ADVISORY The Merchant Securities FTSE 100 Hindsight II Note Our first FTSE-100 Hindsight Note is now fully subscribed; however, as a result of exceptional investor demand we are launching the FTSE- 100 Hindsight

More information

IMPORTANT IT IS DEAMED THAT YOU HAVE READ AND AGREE TO ALL TERMS & CONDITIONS BEFORE USING THIS WEBSITE.

IMPORTANT IT IS DEAMED THAT YOU HAVE READ AND AGREE TO ALL TERMS & CONDITIONS BEFORE USING THIS WEBSITE. Terms & conditions for the use of this Website IMPORTANT IT IS DEAMED THAT YOU HAVE READ AND AGREE TO ALL TERMS & CONDITIONS BEFORE USING THIS WEBSITE. By using this website you are deemed to have full

More information

FX Strategies. in the Post-Crisis World. Eddie Wang Head of FX Structuring, Asia. Hong Kong October 2009

FX Strategies. in the Post-Crisis World. Eddie Wang Head of FX Structuring, Asia. Hong Kong October 2009 FX Strategies in the Post-Crisis World Eddie Wang Head of FX Structuring, Asia Hong Kong October 2009 Contents ONE Key Trends in the Post-Crisis World TWO FX Hedging Strategies THREE FX Investment Strategies

More information

You can find the Report on the SaxoTrader under the Account tab. On the SaxoWebTrader, it is located under the Account tab, on the Reports menu.

You can find the Report on the SaxoTrader under the Account tab. On the SaxoWebTrader, it is located under the Account tab, on the Reports menu. The FX Options Report What is the FX Options Report? The FX Options Report gives you a detailed analysis of your FX and FX Options positions across multiple currency pairs, enabling you to manage your

More information

Summary of investment

Summary of investment S&P500 Growth ESP Contents Summary of investment 2 What is the S&P500 Growth ESP? 2 How are the index levels calculated? 4 Why the S&P500 Index? 4 Examples of potential returns 6 What are the risks of

More information

TERMS OF USE 1 DEFINITIONS

TERMS OF USE 1 DEFINITIONS 1 DEFINITIONS In these Terms of Use a) CDA shall mean Common Data Access Limited, a company registered in England and Wales whose registered office is at 6th Floor East, Portland House, Bressenden Place,

More information

Update following the publication of the Bank of England Stress Test. 16 December 2014

Update following the publication of the Bank of England Stress Test. 16 December 2014 Update following the publication of the Bank of England Stress Test 16 December 2014 Background Top 8 Banks Resilience Stress Tested by PRA following FPC recommendation in March 2013 Guidance for stress

More information

1. Definitions In the Agreement, unless the context requires otherwise, the following words shall have the following meanings:

1. Definitions In the Agreement, unless the context requires otherwise, the following words shall have the following meanings: Trading Services User Terms and Conditions 1. Definitions In the Agreement, unless the context requires otherwise, the following words shall have the following meanings: Access Accredited Software means

More information

FX Key products Exotic Options Menu

FX Key products Exotic Options Menu FX Key products Exotic Options Menu Welcome to Exotic Options Over the last couple of years options have become an important tool for investors and hedgers in the foreign exchange market. With the growing

More information

Perspectives September

Perspectives September Perspectives September 2013 Quantitative Research Option Modeling for Leveraged Finance Part I Bjorn Flesaker Managing Director and Head of Quantitative Research Prudential Fixed Income Juan Suris Vice

More information

Lloyds Banking Group Life Insurance Operations 'A' Ratings Affirmed And Removed From CreditWatch; Outlook Stable

Lloyds Banking Group Life Insurance Operations 'A' Ratings Affirmed And Removed From CreditWatch; Outlook Stable Research Update: Lloyds Banking Group Life Insurance Operations 'A' Ratings Affirmed And Removed From CreditWatch; Outlook Stable Primary Credit Analyst: Oluwatosin S Adesiyan, London (44) 20-7176-3279;

More information

Research Analysts. September 30, 2015

Research Analysts. September 30, 2015 Stocks on the move Scrip I-Direct Code Action Target Stoploss Hitachi Home and Life Solutions AMTAPP Buy in the range of 1380.00-1400.00 1640.00 1280.00 Time Frame: 3 Months Research Analysts Dharmesh

More information

KE Forex Product Term Sheet

KE Forex Product Term Sheet KE Forex Product Term Sheet ** Please note that Page 1-5 is for your reference, and only Page 7 is required to be completed and returned. What is leveraged trading in Forex (Foreign Exchange) Contracts?

More information

WHS FX options guide. Getting started with FX options. Predict the trend in currency markets or hedge your positions with FX options.

WHS FX options guide. Getting started with FX options. Predict the trend in currency markets or hedge your positions with FX options. Getting started with FX options WHS FX options guide Predict the trend in currency markets or hedge your positions with FX options. Refine your trading style and your market outlook. Learn how FX options

More information

IFPAC 2008 Conference. Evaluating Structured Investment Products

IFPAC 2008 Conference. Evaluating Structured Investment Products IFPAC 2008 Conference Evaluating Structured Investment Products Contents Introduction Choice of Product Strategies Examining Some Popular Structured Products Determining the Right Product Understanding

More information

6. Foreign Currency Options

6. Foreign Currency Options 6. Foreign Currency Options So far, we have studied contracts whose payoffs are contingent on the spot rate (foreign currency forward and foreign currency futures). he payoffs from these instruments are

More information

Citi Supplier Finance

Citi Supplier Finance Treasury & Trade Solutions North America Trade Finance Citi Supplier Finance Supplier Finance Program for UTC Suppliers The Solution UTC and Citi have entered into a partnership that enables preferred

More information

SaxoTraderGO. Saxo Academy. Trading Forex on Live Prices. academy.tradingfloor.com

SaxoTraderGO. Saxo Academy. Trading Forex on Live Prices. academy.tradingfloor.com Saxo Academy SaxoTraderGO Trading Forex on Live Prices Please note, these notes are transcripts of the videos on Saxo Academy and are designed to accompany the SaxoTraderGO video series. Making an FX Spot

More information

Market Making for Exchange Traded Funds. Corporates & Markets

Market Making for Exchange Traded Funds. Corporates & Markets Market Making for Exchange Traded Funds Corporates & Markets Commerzbank your trusted partner in the ETF market Since the start of the new millennium, exchange traded funds (ETFs) have experienced phenomenal

More information

Options Strategy for Professional Clients

Options Strategy for Professional Clients Options Strategy for Professional Clients Optimise is an options strategy which uses market volatility selling FTSE100 cash settled options contracts. Premium is taken from the market on options that are

More information

UK Commercial Real Estate Market Outlook

UK Commercial Real Estate Market Outlook UK Commercial Real Estate Market Outlook April 214 Foreword Paul Coates, Head of Real Estate Welcome to this first of a series of notes exploring the outlook for UK Commercial Real Estate. In this note

More information

INTDEV INTERNET TECHNOLOGIES FAX TO EMAIL TERMS AND CONDITIONS

INTDEV INTERNET TECHNOLOGIES FAX TO EMAIL TERMS AND CONDITIONS LEGAL NOTICES INTDEV INTERNET TECHNOLOGIES FAX TO EMAIL TERMS AND CONDITIONS This agreement, governs the terms and conditions of use of fax services, between the user as an authorized user of such services,

More information

Dual Listing of the SGX EURO STOXX 50 Index Futures in Singapore

Dual Listing of the SGX EURO STOXX 50 Index Futures in Singapore September 2011 Dual Listing of the SGX EURO STOXX 50 Index Futures in Singapore Mr Tobias Hekster Managing Director, True Partner Education Ltd Senior Strategist, Algorithmic Training Group of Hong Kong

More information

CONVERTIBLE DEBENTURES A PRIMER

CONVERTIBLE DEBENTURES A PRIMER What are convertible debentures? CONVERTIBLE DEBENTURES A PRIMER They are hybrid securities, combining the features of a conventional debenture with the option of converting, under certain circumstances,

More information

Absolute return: The search for positive returns in changing markets

Absolute return: The search for positive returns in changing markets Absolute return: The search for positive returns in changing markets Tuesday, 7 June 2011 Portfolio Manager for Global Fixed Income and Absolute Return Funds www.dbadvisors.com Topics for discussion What

More information

SG TURBOS GEARED EXPOSURE TO AN UNDERLYING WITH A KNOCK-OUT FEATURE

SG TURBOS GEARED EXPOSURE TO AN UNDERLYING WITH A KNOCK-OUT FEATURE SG TURBOS GEARED EXPOSURE TO AN UNDERLYING WITH A KNOCK-OUT FEATURE Turbos are products suitable for UK sophisticated retail and professional investors who have a good understanding of the underlying market

More information

DISCLAIMER. Any fact, assessment, analysis, forecasts, opinion and other information (collectively Information ) released by:

DISCLAIMER. Any fact, assessment, analysis, forecasts, opinion and other information (collectively Information ) released by: DISCLAIMER General This website can be accessed worldwide however the information on the website is related to Saxo Capital Markets CY Limited and is not specific to any other country. All clients will

More information

FX, Derivatives and DCM workshop I. Introduction to Options

FX, Derivatives and DCM workshop I. Introduction to Options Introduction to Options What is a Currency Option Contract? A financial agreement giving the buyer the right (but not the obligation) to buy/sell a specified amount of currency at a specified rate on a

More information

Application to open a margin trading Account (Personal)

Application to open a margin trading Account (Personal) Application to open a margin trading Account (Personal) Personal information 01 Personal Details Surname: Forenames: please complete all details. our regulator requires that we obtain this information

More information

Trinity Online Application - Terms and Conditions of Use

Trinity Online Application - Terms and Conditions of Use IMPORTANT NOTICE PLEASE READ THE FOLLOWING TERMS AND CONDITIONS CAREFULLY. IF YOU DO NOT AGREE WITH THESE TERMS AND CONDITIONS, YOU MUST NOT USE THIS APPLICATION. BY USING THIS APPLICATION AND/OR ANY OF

More information

Lake Hill Crude Oil Market Update

Lake Hill Crude Oil Market Update Lake Hill Crude Oil Market Update Oil markets are experiencing forced hedging, unwinds and de-risking by both producers and consumers, exacerbating the recent spike in volatility. This distressed trading

More information

SHORT TERM FLAT NBP. Trading Terms & Conditions

SHORT TERM FLAT NBP. Trading Terms & Conditions SHORT TERM FLAT NBP TR Trading Terms & Conditions 2015 ("NBP 2015") SHORT TERM FLAT NBP TRADING TERMS AND CONDITIONS 1. Definitions and Interpretation 1.1 The following words or phrases, where they appear

More information

PREMIER OIL PLC 5% BONDS DUE 2020

PREMIER OIL PLC 5% BONDS DUE 2020 INFORMATION BOOKLET 25 November 2013 PREMIER OIL PLC 5% BONDS DUE 2020 Joint Lead Managers Barclays Canaccord Genuity Limited Lloyds Bank Authorised Offerors Barclays Stockbrokers Brown Shipley Canaccord

More information

THE NATIONAL LOTTERY COMMISSION AND [INSERT BIDDER'S NAME] BID PROCESS AGREEMENT. National Lottery Commission 101 Wigmore Street London W1U 1QU

THE NATIONAL LOTTERY COMMISSION AND [INSERT BIDDER'S NAME] BID PROCESS AGREEMENT. National Lottery Commission 101 Wigmore Street London W1U 1QU 2006 THE NATIONAL LOTTERY COMMISSION AND [INSERT BIDDER'S NAME] BID PROCESS AGREEMENT National Lottery Commission 101 Wigmore Street London W1U 1QU AGREEMENT BETWEEN (1) [Insert bidder's name] a company

More information

Derivatives - Options Theory September 2008

Derivatives - Options Theory September 2008 - Options Theory September 2008 Milestone International Tax Consultants Ltd 45 Clarges Street London W1J 7EP Tel: +44 (0)20 7016 5480 Fax: +44 (0)20 7016 5481 Web: www.milestonetax.com Definitions Option

More information

Introduction to Equity Derivatives

Introduction to Equity Derivatives Introduction to Equity Derivatives Aaron Brask + 44 (0)20 7773 5487 Internal use only Equity derivatives overview Products Clients Client strategies Barclays Capital 2 Equity derivatives products Equity

More information

This document has been provided by the International Center for Not-for-Profit Law (ICNL).

This document has been provided by the International Center for Not-for-Profit Law (ICNL). This document has been provided by the International Center for Not-for-Profit Law (ICNL). ICNL is the leading source for information on the legal environment for civil society and public participation.

More information

Corporate and Investment Banking. Webtrader Challenge Rules. Play the Global Markets

Corporate and Investment Banking. Webtrader Challenge Rules. Play the Global Markets Corporate and Investment Banking Webtrader Challenge Rules Play the Global Markets Please consider these Rules carefully as they may limit Standard Bank s liability and amount to an assumption of risk

More information

CITI GLOBAL INTEREST RATES STRATEGY INDEX FUND SIMPLIFIED PROSPECTUS. Dated 4 August 2010

CITI GLOBAL INTEREST RATES STRATEGY INDEX FUND SIMPLIFIED PROSPECTUS. Dated 4 August 2010 CITI GLOBAL INTEREST RATES STRATEGY INDEX FUND SIMPLIFIED PROSPECTUS Dated 4 August 2010 This Simplified Prospectus contains key information in relation to Citi Global Interest Rates Index Fund (the Fund),

More information

Single Stock Futures

Single Stock Futures Single Stock Futures Single Stock Futures (or Individual Equity Futures) are exchange traded derivative instruments offering investors amplified exposure to price movements in a wide array of listed shares.

More information

Rating Action: Moody's reviews Royal Bank of Scotland's ratings for downgrade

Rating Action: Moody's reviews Royal Bank of Scotland's ratings for downgrade Rating Action: Moody's reviews Royal Bank of Scotland's ratings for downgrade Global Credit Research - 12 Feb 2014 Review follows announcement of weaker-than-expected capital position at end-2013 London,

More information

NewGold Exchange Traded Fund

NewGold Exchange Traded Fund NewGold Exchange Traded Fund NewGold ETF is one of the simplest and cost-efficient methods for investors to invest directly in physical gold. Exchange traded funds (ETFs) are open-ended passive investment

More information

SNS REAAL Insurance Operations (SRIO) On Watch Developing After Announced Sale News

SNS REAAL Insurance Operations (SRIO) On Watch Developing After Announced Sale News Research Update: SNS REAAL Insurance Operations (SRIO) On Watch Developing After Announced Sale News Primary Credit Analyst: Mark D Nicholson, London (44) 20-7176-7991; mark.nicholson@standardandpoors.com

More information

The Scottish Investment Trust PLC

The Scottish Investment Trust PLC The Scottish Investment Trust PLC INVESTOR DISCLOSURE DOCUMENT This document is issued by SIT Savings Limited (the Manager ) as alternative investment fund manager for The Scottish Investment Trust PLC

More information

the basics of Implied Volatility

the basics of Implied Volatility the basics of Implied Volatility About VSTOXX and VIX Short- and Mid-Term Futures Indices Volatility is a complex investment tool and is aimed at sophisticated investors who understand the way volatility

More information

Tracker Certificate on Solactive Cloud Computing Performance-Index

Tracker Certificate on Solactive Cloud Computing Performance-Index BRANDSCHENKESTRASSE 90, CH-8002 ZÜRICH +41 58 800 1111 TERMSHEET@EFGFP.COM WWW.EFGFP.COM Final Termsheet Participation-Products SSPA Product Type: 1300 Tracker Certificate on Solactive Cloud Computing

More information

How To Take Advantage Of The Coming Rise In Volatility

How To Take Advantage Of The Coming Rise In Volatility How To Take Advantage Of The Coming Rise In Volatility Introduction If you ve spent any amount of time following the market, then you re familiar with the term volatility. You ll often hear financial media

More information

Terms and Conditions for Tax Services

Terms and Conditions for Tax Services Terms and Conditions for Tax Services In the course of delivering services relating to tax return preparation, tax advisory, and assistance in tax controversy matters, Brady, Martz & Associates, P.C. (we

More information

Banking & Finance in India. Bill Susinski, Head of International Business, HSBC India

Banking & Finance in India. Bill Susinski, Head of International Business, HSBC India Banking & Finance in India Bill Susinski, Head of International Business, HSBC India Agenda Banking & Finance in India Banking Sector & Regulatory Issues for MNCs Payment Landscape Foreign Exchange & Hedging

More information

CLSA GLOBAL PORTFOLIO TRADING SERVICES ANNEX. In this Annex, the following capitalised terms have the following meanings:

CLSA GLOBAL PORTFOLIO TRADING SERVICES ANNEX. In this Annex, the following capitalised terms have the following meanings: CLSA GLOBAL PORTFOLIO TRADING SERVICES ANNEX 1. Definitions and Interpretation In this Annex, the following capitalised terms have the following meanings: "Affiliates" shall mean members of the CLSA Group;

More information

Release 3.2 Oct 2009.

Release 3.2 Oct 2009. This document contains the terms and conditions of the Linix Ltd support services contract. All support and consultancy advice given by Linix Ltd to our customers is covered by the terms of this contract.

More information

FX Derivatives Terminology. Education Module: 5. Dated July 2002. FX Derivatives Terminology

FX Derivatives Terminology. Education Module: 5. Dated July 2002. FX Derivatives Terminology Education Module: 5 Dated July 2002 Foreign Exchange Options Option Markets and Terminology A American Options American Options are options that are exercisable for early value at any time during the term

More information

European Commission Releases Proposal for Regulation of Money Market Funds 4 September 2013

European Commission Releases Proposal for Regulation of Money Market Funds 4 September 2013 European Commission Releases Proposal for Regulation of Money Market Funds 4 September 2013 Today the European Commission (EC) released a proposal for a regulation on money market funds (MMFs) established,

More information

PBAPCSA. Project Bank Account Documentation. Project Bank Account

PBAPCSA. Project Bank Account Documentation. Project Bank Account PBAPCSA Project Bank Account Documentation 2009 Project Bank Account Project Bank Account Documentation (PBA) This document contains the three relevant parts, i.e. Project Bank Account Agreement, Additional

More information

Fixed Income Training Seminar Asset Management Experience

Fixed Income Training Seminar Asset Management Experience Asset Management Fixed Income Training Seminar Asset Management Experience Philipp Büchler, Chris Koslowski, Markus Kramer, Manuel Walker Credit Suisse Asset Management Core Fixed Income Group Zurich August

More information

Real Estate Salesman Agreement (Independent Contractor)

Real Estate Salesman Agreement (Independent Contractor) Real Estate Salesman Agreement (Independent Contractor) This Packet Includes: 1. General Information 2. Instructions and Checklist 3. Real Estate Salesman Agreement (Independent Contractor ) 1 General

More information

Energy Daily. Energy Daily Outlook. Market Commentary. Daily Close Price Changes

Energy Daily. Energy Daily Outlook. Market Commentary. Daily Close Price Changes Energy Daily Energy Daily 07 January 2016 Brought to you by Phillip Futures Pte Ltd (A member of PhillipCapital) Daily Close Price Changes Product (NYMEX) 6-Jan 1d chg % Change WTI Feb'16 33.97-2 -5.9%

More information

Content. Executive Summary. What is a CFD? Who are the participants? Advantages of trading CFDs. Features and benefits of CFDs. Reasons for using CFDs

Content. Executive Summary. What is a CFD? Who are the participants? Advantages of trading CFDs. Features and benefits of CFDs. Reasons for using CFDs Corporate Retail Contracts and Investment for Difference Banking Content Executive Summary What is a CFD? Who are the participants? Advantages of trading CFDs Features and benefits of CFDs Reasons for

More information

A guide to managing foreign exchange risk

A guide to managing foreign exchange risk A guide to managing foreign exchange risk CPA Australia Ltd ( CPA Australia ) is one of the world s largest accounting bodies with more than 122,000 members of the financial, accounting and business profession

More information

Vanilla Options. Product Disclosure Statement

Vanilla Options. Product Disclosure Statement Vanilla Options Product Disclosure Statement VANILLA OPTIONS PRODUCT DISCLOSURE STATEMENT Issue Date: 29 June 2015 TABLE OF CONTENTS 1. PURPOSE 2. IMPORTANT INFORMATION 2.1 COPIES 2.2 UPDATES RELATING

More information

Investing In Volatility

Investing In Volatility Investing In Volatility By: Anish Parvataneni, CFA Portfolio Manager LJM Partners Ltd. LJM Partners, Ltd. is issuing a series a white papers on the subject of investing in volatility as an asset class.

More information

INSTALMENT WARRANT MECHANICS

INSTALMENT WARRANT MECHANICS INSTALMENT WARRANT MECHANICS Antonie A. Kotzé Financial Chaos Theory consultant@quantonline.co.za Abstract Instalment warrants are very popular in Australia and these instruments have been listed by Nedbank

More information

This AGREEMENT, dated, is entered into by and between:

This AGREEMENT, dated, is entered into by and between: This AGREEMENT, dated, is entered into by and between: Minneapolis Grain Exchange (the "Sublicensor"), a not-for-profit mutual membership organization under the laws of the State of Minnesota, U.S.A. with

More information

MSCI Dividend Masters Indexes Methodology

MSCI Dividend Masters Indexes Methodology Index Methodology MSCI es Methodology July 2014 msci.com Contents 1 Introduction... 3 2 Index Construction Methodology... 3 Section 2.1: Applicable Universe... 3 Section 2.2: Security Selection... 3 Section

More information

COVERED WARRANTS HOW TO TRADE. www.sglistedproducts.co.uk NOVEMBER 2014 LISTED PRODUCTS

COVERED WARRANTS HOW TO TRADE. www.sglistedproducts.co.uk NOVEMBER 2014 LISTED PRODUCTS NOVEMBER 2014 LISTED PRODUCTS COVERED WARRANTS HOW TO TRADE Covered warrants are products suitable for professional clients and sophisticated retail clients in the UK who have a good understanding of the

More information

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT

Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to Derivatives»

More information

Directional Options Trading Strategy And Position Management

Directional Options Trading Strategy And Position Management 3 rd Annual CBOE Risk Management Conference Europe Directional Options Trading Strategy And Position Management Bill Looney CBOE Global Business Development Oleg Lugovkin Volatility PM Argentiere Capital

More information

FX Options NASDAQ OMX

FX Options NASDAQ OMX FX Options OPTIONS DISCLOSURE For the sake of simplicity, the examples that follow do not take into consideration commissions and other transaction fees, tax considerations, or margin requirements, which

More information

GLOBAL CFD LIMITED CONTRACTS FOR DIFFERENCE TERMS OF BUSINESS

GLOBAL CFD LIMITED CONTRACTS FOR DIFFERENCE TERMS OF BUSINESS GLOBAL CFD LIMITED CONTRACTS FOR DIFFERENCE TERMS OF BUSINESS This Agreement, together with the Fees List, as amended from time to time, sets out the terms and conditions on which Global CFD Limited will

More information

THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015

THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015 THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015 The World Markets Company plc (the World Markets Company ) provides a global foreign exchange

More information

Research Analysts. Granules GRANUL Buy in the range of 142.00-146.00 168.00 133.00 EID Parry EIDPAR Buy in the range of 128.00-134.00 170.00 121.

Research Analysts. Granules GRANUL Buy in the range of 142.00-146.00 168.00 133.00 EID Parry EIDPAR Buy in the range of 128.00-134.00 170.00 121. Stocks on the move Scrip IDi I-Direct Code Action Target Stoploss Granules GRANUL Buy in the range of 142.00-146.00 168.00 133.00 EID Parry EIDPAR Buy in the range of 128.00-134.00 170.00 121.00 Time Frame:

More information

MSCI Global Minimum Volatility Indices Methodology

MSCI Global Minimum Volatility Indices Methodology MSCI Global Minimum Volatility Indices Methodology Table of Contents Section 1: Introduction... 3 Section 2: Characteristics of MSCI Minimum Volatility Indices... 3 Section 3: Constructing the MSCI Minimum

More information

Brooks Macdonald. Structured Products Fact or Fiction?

Brooks Macdonald. Structured Products Fact or Fiction? Brooks Macdonald Structured Products Fact or Fiction? 1 Agenda Introduction & Background - Fiction Facts Complexity Facts Liquidity Facts Costs How We Work With Brooks Macdonald Appendix 2 Introduction

More information

Maturity The date where the issuer must return the principal or the face value to the investor.

Maturity The date where the issuer must return the principal or the face value to the investor. PRODUCT INFORMATION SHEET - BONDS 1. WHAT ARE BONDS? A bond is a debt instrument issued by a borrowing entity (issuer) to investors (lenders) in return for lending their money to the issuer. The issuer

More information

Equity Derivatives Strategy

Equity Derivatives Strategy Equity Derivatives Derivatives for Asset/Fund Managers Eli Vichman Head of Emerging Markets Volatility Trading, RBS Kiev 3 rd June 2011 Why use Derivatives? Transforming risk profile and Enhancing returns

More information

Rethinking Schools Limited Institutional Site License

Rethinking Schools Limited Institutional Site License Rethinking Schools Limited Institutional Site License This License Agreement ( License ) is entered into the day of [20 ] ( Effective Date ) between Rethinking Schools Limited, a Wisconsin Corporation,

More information

Retail FX Margin Trading. Hjalmar Schröder / Reto Stadelmann

Retail FX Margin Trading. Hjalmar Schröder / Reto Stadelmann Retail FX Margin Trading Hjalmar Schröder / Reto Stadelmann August 2007 Agenda for today 1 What is Retail FX Margin Trading? 2 Size and Growth of Retail FX 3 Views on trends in Retail FX and their Implications

More information

An Agreement dated [ enter date ] governing the conduct of Insurance Business between:

An Agreement dated [ enter date ] governing the conduct of Insurance Business between: Terms of Business Agreement (Non Risk Transfer) An Agreement dated [ enter date ] governing the conduct of Insurance Business between: and [Name of Managing Agent] on its own behalf and on behalf of the

More information

2014 FULL YEAR RESULTS

2014 FULL YEAR RESULTS 2014 FULL YEAR RESULTS -3% -8% Financial and Operational Highlights Operational Revenue mntl (1) Ancillary Revenue/Pax Load Factor 29% 16% 13% 22% TRY mn 2.38 4,7 TRY mn 3.08 1,7 TRYm n 569,3 TRYm n 661,9

More information

NewGold and NewPlat Exchange Traded Funds. Corporate and Investment Banking

NewGold and NewPlat Exchange Traded Funds. Corporate and Investment Banking NewGold and NewPlat Exchange Traded Funds Corporate and Investment Banking ETFs an introduction What are ETFs? An exchange-traded fund (or ETF) is an investment vehicle traded on a stock exchange, much

More information

MERKO EHITUS GROUP Annual General Meeting of Shareholders. 29 April 2015 Nordic Hotel Forum, Tallinn

MERKO EHITUS GROUP Annual General Meeting of Shareholders. 29 April 2015 Nordic Hotel Forum, Tallinn MERKO EHITUS GROUP Annual General Meeting of Shareholders 29 April 2015 Nordic Hotel Forum, Tallinn Agenda 1. Approval of the annual report of the year 2014 and overview of the results and the prospective

More information

PWM Structured Solutions. May 2011

PWM Structured Solutions. May 2011 PWM Structured Solutions May 2011 Payout at (%) Euro Put Option Iterations Key Features Hypothetical Payoff at (assuming 5.64% premium) Trade: Client Buys European Style OTC Put Option Underlyer: EURUSD

More information

Index Options Beginners Tutorial

Index Options Beginners Tutorial Index Options Beginners Tutorial 1 BUY A PUT TO TAKE ADVANTAGE OF A RISE A diversified portfolio of EUR 100,000 can be hedged by buying put options on the Eurostoxx50 Index. To avoid paying too high a

More information

Consulting Terms. 1. Consulting Services

Consulting Terms. 1. Consulting Services These Consulting Terms, together with a Work Order, and any terms which are incorporated by written reference in any of the foregoing (including written reference to information contained in a URL or policy)

More information

Graphite Electrodes. Imposition of antidumping duty augurs well. Sector Update. ICICI Securities Ltd Retail Equity Research.

Graphite Electrodes. Imposition of antidumping duty augurs well. Sector Update. ICICI Securities Ltd Retail Equity Research. Sector Update Rating matrix Target price Company Old New CMP Potential Upside HEG 225 275 238 19% Graphite India 85 15 91 18% Target period 12-15 months Price performance (%) Return % 1M 3M 6M 12M HEG

More information

ICBC (London) plc Foreign Currency Trading Service Agreement

ICBC (London) plc Foreign Currency Trading Service Agreement ICBC (London) plc Foreign Currency Trading Service Agreement ICBC (London) plc is a company registered in England and Wales (company number 4552753). Registered office: 81 King William Street, London EC4N

More information

TERMS AND CONDITIONS OF USE

TERMS AND CONDITIONS OF USE TERMS AND CONDITIONS OF USE PLEASE READ THESE TERMS AND CONDITIONS OF USE CAREFULLY. THESE TERMS AND CONDITIONS OF USE MAY HAVE CHANGED SINCE YOUR LAST VISIT TO THIS WEB SITE. BY USING THIS WEB SITE, YOU

More information

Improved US data halts gold while supporting oil

Improved US data halts gold while supporting oil Improved US data halts gold while supporting oil The first week of the last quarter brought a host of important economic data culminating with the US unemployment report which turned out to be better than

More information

Excess PI Insurance Policy Wording

Excess PI Insurance Policy Wording Excess PI Insurance Policy Wording GBUL Excess PI AGG June 2013 CONTENTS Notice To The Insured 02 General Conditions 03 Claims Conditions 03 Several Liability 03 Definitions 03 Excess PI Insurance Policy

More information