Financial markets are complex and large in size. Before going for differences let us try to understand the terms hedging and forward contract in brief.HedgingIt is the technique which is used to reduce the risk of financial assets. Risk of uncertainty of future income is involved. By hedging they can ... Read More

Hedging and speculators play an important role in markets. Hedgers protect themselves against reduced risk of commodities by hedging and by speculation speculators earn profits from changes.HedgingThe term hedging is used to minimize risk of loss due to price movement in the market.This is done by holding two different positions ... Read More

Both options and warrants are derivatives traded in exchange and give investors an option to buy at pre agreed date and price. The main differences between two are warrants are financial instruments whereas options are contracts. Values ascertained from livestock’s, bullion etc.OptionsThese are derivative securities in the fundamental category in ... Read More

Investors have different options to invest their money in stock markets. One of them is the options category of securities in which they trade their securities at agreed date and price.Options are sub divided into the following −Call optionIn this option buyer has the right to buy assets at strike ... Read More

Both options and swaps are derivatives of financial instruments. Both values depend on the underlying asset.OptionsRight to buy or sell the asset at a pre agreed price at a particular date. Important terms used in this are exercise date, strike price and option premium. It is in the non-recoverable amount.Exercise ... Read More

Financial derivatives are categorized into forward contracts, futures contracts, options and swaps. Futures can be understood as legal binding of trade at a future date at an agreed price. On the other hand options are investors have the right to buy or sell products in stipulated time at pre specified ... Read More

Let us learn about the tort and contract before understanding the differences between them.ContractIt is a set of promise/promises which is legally enforced between parties. These are enforceable if any party is affected or injured then they are allowed to access legal remedies.A contract consists of offer, acceptance of offer ... Read More

Before going for comparison between bid and offer price, let us first try to understand the concept of bid price and offer price with an example.Let us a vendor offer a price for a T-shirt of Rs.500/- and the customer starts bidding at Rs.300/- then spreads the value of Rs.200/- ... Read More

Let us learn about the offer and quotation before understanding the differences between them.OfferIt is an expression to show his/her willingness to do something for another to do or not to do. It is the first in contract. Offer must be certain, complete and defined. Offer is legal binding between ... Read More

Let us learn about the contracts and quasi contracts before understanding the differences between them.ContractsIt is an agreement between more than one party. Contracts are made with lawful considerations and objects between parties.The essential elements in the contracts are as follows −Legitimate offer followed by acceptance.Agreement should not be void ... Read More