What is derivates and types of derivatives?
Answer / ameet narayankhedkar
Derivative: A financial contract whose value is derived from
the performance of assets, interest rates, currency exchange
rates, or indexes. Derivative transactions include a wide
assortment of financial contracts including structured debt
obligations and deposits, swaps, futures, options, caps,
floors, collars, forwards and various combinations thereof.
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Hi I would like to know what is journal entry for buying securities with Margin Trading I mean 50% of cost is paid by broker. 2nd question is when we withdraw extra money from the balance we have in bank account which means our balance become (-) what is journal entry for that, should I just credit the bank or should I put the extra money with-drawled as a liability account ? Thank you in advance!
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1 Answers Chartered Accountant,