List of top Financial Markets Management Questions on Banking and Finance

Give Detail of VaR Margin?

VaR is a single number, which encapsulates whole information about the risk in a portfolio. It measures potential loss from an unlikely adverse event in a normal market environment. Computation of the VaR margin requires four definitions. Explain them.

Describe the various advantages of the Screen-Based Trading System (SBTS)?

There are times when you think the market is going to rise over the next two months; however in the event that the market does not rise, you would like to limit your downside. One way you could do this is by entering into a spread. A spread trading strategy involves taking a position in two or more options of the same type, that is, two or more calls or two or more puts. A spread that is designed to profit if the price goes up is called a bull spread. Discuss the case with an example.

Write in brief about Regular Lot Matching.

The trading members are required to provide liquid assets which adequately cover various margins & minimum capital requirements under capital adequacy requirement. Describe its liquid asset requirement.

Explain Impact Cost?

Write the working process of Internet Broking.

What is operational and legal Risk?

What are the rights enjoyed by Preference shareholders?

Explain the conditions under which the relevant authority may require a trading member to suspend its business in part or in whole?

_ _ _ _ _ _ _ note is a confirmation of trade(s) done on a particular day for and on behalf of a client.

Failure to submit audited accounts by a trading member in which type of conduct?

Members should have a prudent system of risk management to protect themselves from client default. _ _ _ _ _ _ is an important element of such a system.

What is meant by the creation of charge in the context of secured loans?