Exchange based futures and options are tradable instruments. The contract specification is the key tool that standardises and makes contracts fungible and therefore tradeable. Tradeability attracts market participants such as speculators and hedgers, which provides liquidity to the markets.
Key learning objectives:
What are Derivatives Exchanges?
What are the advantages of having Derivatives Exchanges?
What are the key components of contract specifications?
Introduction to Interest Rate Swaps and Use Cases
David Leeming • 17:58