Derivatives are one of the three (3) main forms of financial instruments, with the other two being stocks; equity or shares and debt; mortgages or bonds. A derivative is a contract or security that derives its value from the performance of one or more underlying assets. These assets themselves are simply known as “the underlying” and can be bonds, interest rates, stocks, market indexes, commodities and currencies. The derivative essentially is a contract between two sides based on the asset or assets value. The price is determined by fluctuations in the performance of the underlying assets. The conditions in the contract, such as dates, value of the underlying variables, contractual obligations, notional amount and definition of the underlying variables, govern how payments are to be made between the parties. Derivatives are cash flows, and conditional and discounted to present value. Risk accompanying trade and marketing of the underlying can be separated by contract and attached to the financial derivative. The underlying asset need not switch hands and allows for separation of ownership and participation in the value on the market of the underlying. There are two types of derivatives, distinguished by the methods by which they are traded on the markets.
- Over-the-Counter (OTC) – Over the counter derivatives are derivatives that are negotiated, traded and closed between two sides without using a financial exchange or other intermediary. The over the counter derivative market is the largest market for this type of security. The market is predominantly unregulated regarding disclosure between sides, compromising of large banks, hedge funds and other upper echelon financial entities.
- Exchange Traded Derivatives (ETD)- These are derivatives that are traded on specialized derivatives exchangesor other types of exchange. A derivatives exchange involves sides trading standardized contracts that have been defined by the exchange.
Derivatives make up over one third of the global daily financial transitions processed by the various financial intermediaries. Some common derivative contracts are forwards, futures, options, binary options, warrants and swaps. Each of these categories has its various subsets, which differ along contractual lines or specifications. Derivatives serve a number of financial functions, which serve to ease the flow of investment capital from investors to loanees. Some of the more important financial functions of derivatives are firstly that derivatives aid in the assessment and prediction of the present and future value of an asset. Prices in a derivative market that is structured often guide the underlying to the price point predicted at the outset of the derivative contract. The derivatives market also relocates risk, from those who are more cautious to those who can endure higher risks. Transactions on the derivative market spur transactions in other markets like the spot market. This is due to increased facility to transfer risk in the derivatives market. With higher chances to transfer risk, more parties can get involved in trading and conducting transactions. Derivative prices also serve as an educated guide to the public on uncertain predictions.
Cathedral Investment Bank CIBDer
Cathedral Investment Bank specialises in being the best at providing all the services our clients need with a level of excellence and professionalism that is unrivalled. This extends to our futures and derivatives unit, the Cathedral Investment Bank International Derivatives CIBDer unit. The Cathedral Investment Bank CIBDer unit has developed the most advanced, easiest to navigate global platform, capable of performing hundreds of functions and market analysis in real time. The platform is visual, with an easy to understand operating system that users will find allows them to perform an array of functions. The CIBDer platform will allow for advanced operations of buying, selling, hedging and basic technical analysis. The CIBDer platform also possesses the power to manage and maintain a portfolio containing over one hundred technical-mathematic indicators. The platform features a built in, unique risk management system called “Trader Guardian” that allows for flexibility in completion of financial transactions and allows the user to asses risk and exposure. The platform is visually stunning, with a simple yet intuitive interface and allows clients to observe the financial instruments in traditional lines and the different types of candles such as “Japanese”, “Renko”, “Heikin-ashi”, “shallow” and others. This is done through tech graphing, which is the mathematical representation of the market data, in a 2D or 3D visual chart. The Cathedral Investment Bank CIBDer platform is so advanced; it calculates over one hundred financial theories that previously had to be calculated by hand to arrive at a price for a security. Options such as “Straight Through Processing” allow for absolute ease of use and efficiency. The platform also has lower bandwidth requirements, making the Cathedral Investment BankCIBDer a better option for client companies. The platform and unit have an unrivaled arsenal of financial, technical and analytical tools to assist the user and would otherwise only be possible through manual calculations. With the Cathedral Investment Banks CIBDer thousands of financial products become accessible to the user through the multi-product platforms. Futures, forwards and currencies are just a few of the global options available. For currency traders there is the CIBDer contains software called CIBDer Trader, one of the best known at the international level, as a platform for derivatives activity. The Cathedral Investment Bank CIBDer features the following characteristics:
- Brokerage operation from 1.4pips
- Execution of real time operations
- Operate mini or standard lots on the same account
- Low minimum initial deposit
- Over 100+ technical indicators
- Access to fundamental analytical tools
- Link Cathedral accounts at no cost
- Leverage up to 200:1
- Top quality customer service
- Available derivatives training
The Cathedral Investment Bank CIBDer has some excellent advantages to the user.
- Minimum Initial Deposit- The minimum initial deposit required to open an account with CIBDer is USD ten thousand (USD10,000).
- Universal Accounts- CIBDer allows users to operate mini batches of ten thousand (10,000) and standard batches of one hundred thousand (100,000), as opposed to traditional brokers in the derivatives market.
- Multiple Currency Accounts- Users may open accounts in any one of eight (8) base currencies. This eliminates the possibility of exposure to exchange risk during the depositing or withdrawal of funds.
- Zero Commission- CIBDer charges no commission on its services, preferring to draw revenue from the natural operation of the market relating to supply demand and spread.
- Stock Market Operation- CIBDer offers users fixed securities trade at derivatives and futures.
- Order Processing- Cathedral Investment Bank prides itself on customer care and completes orders in a quick, fair and reliable manner. Orders from users are filled from the best prices available on the markets seconds after being placed.
- Order Types- Cathedral Investment Bank CIBDer will help users enter markets efficiently, ensure profitability and with minimum risk through the array of products available.
- Interest Policy for Reinvestment- Cathedral Investment Bank CIBDer charges competitive reinvestment rates for users, for all mini and standard positions.
- Leverage and Margin- Cathedral Investment Bank CIBDer gives user the flexibility and opportunity to operate at a maximum option, 200:1 leverage. This paves the way for high level gains for users.
- Margin Notice- Cathedral Investment Bank CIBDer always has the client in mind and has a policy to protect users from losing more money than currently housed in their accounts. CIBDer will automatically close positions that trigger a margin call.
The Cathedral Investment Bank CIBDer also has a feature which decreases the instances of requiting, especially in volatile markets. This is called the CIBDer Operator Range. Cathedral Investment Bank CIBDer is the best option for the quest into the derivatives markets. Utilising the most advanced technology and the best analysts and analytical tools, CIBDer is recognised as a global leader in the derivatives financial services industry. The Cathedral Investment Bank CIBDer platformprovides advanced mathematical algorithms to avoid any type of manual calculations, and provide graphical interfacefor users. These advancements plus the easy intuitive visuals complete with tech graphing, will ensure that users get the best out of their positions in derivatives markets.
Cathedral Investment Bank, the Derivatives Bank.
As leader in the field of derivatives and futures, Cathedral Investment bank is fully staffed with experienced professionals to assist in the multitude of decisions regarding the next big investment. Cathedral uses the very best tools and technology to fully assess financial situation and develop a plan that is perfect for financial goals. With low costs, cutting edge technology and vast technical expertise, real time portfolio management, risk management, tools for the derivatives markets and an excellent customer service track record, Cathedral Investment Bank is poised to help clients navigate the derivatives market. Cathedral Banks mission is to provide professional solutions for various derivative transactions to all our clients as well as other market players. CIBDer offers partners and potential partners a complete and professional solution to market operations. Cathedral has offices in seven countries and operate in thirty five nations worldwide, so contact Cathedral Investment Bank, anywhere in the world.