1522
Bond Futures to Boost Liquidity
Economy, Business And Markets

Bond Futures to Boost Liquidity

Bond futures are instruments to provide more liquidity and reduce risks in the capital market, said a brokerage firm at stock exchange.

The bond futures not only provide more liquidity, but they also create an opportunity for those who are pessimistic about the market, Mohamad Beheshtian told SENA.
“A shareholder, for instance, buys bonds in cash but he predicts the market would plunge. He can then sell the bonds as a future contract. On the due date, he will make his profit even if the market plunges,” said Beheshtian, the manager of Khebregan Sahaam brokerage.
The bond futures first became tradable three years ago but they were not welcome due to some software problems, lack of necessary infrastructures, and low volume and value of transactions. When the bond futures transactions are low either in volume or value, the seller and buyer may not match and this will create obstacle to liquidity.
A bond future is a contractual obligation for the contract holder to purchase or sell a bond on a specified date at a predetermined price. A bond future can be bought in a futures exchange market and the prices and dates are determined at the time the future is purchased.

Short URL : http://goo.gl/8bN1z1

You can also read ...

Iran Receives First Round of Post-Sanctions Finance From European Banks
In what were the first finance deals clinched with cautious...
Indian Bank to Extend $150m for Chabahar Development
Iran is expected “very soon” to approach India’s Exim Bank...
TEDPIX soared by 3,459 points or 4.2% during the sixth month of the year–the highest monthly rise recorded so far this year.
Tehran Stock Exchange’s primary index TEDPIX gained 8,346.3...
68% of Non-Oil Exports Headed to 5 Countries
China, Iraq, the UAE, South Korea and India imported 68.7% of...
Gold Coin Hits 3-Week Low
Gold coin prices are modestly down and hit a three-week low in...
Flat Steel Import Market Cools as Domestic Prices Drop
Import prices for flat steel materials cooled down in Iran in...
51.5% Rise in University Graduates
The findings of the most recent National Population and...
Roads and Urban Development Minister Abbas Akhoundi has...

Trending

Googleplus