Liberating Solution Interview Questions and Answers

Trade life cycle refers to the stages involved in a trade from initiation to settlement.

• Trade initiation

• Order execution

• Trade confirmation

• Clearing and settlement

• Trade reconciliation

• Post-trade activities

• Examples: equity trade, bond trade, foreign exchange trade

Social media has advantages like increased connectivity and disadvantages like addiction and cyberbullying.

• Advantages: increased connectivity, easy access to information, networking opportunities, marketing and advertising potential

• Disadvantages: addiction, cyberbullying, privacy concerns, spread of misinformation, negative impact on mental health

• Example: Facebook connects people across the world, but also has been criticized for spreading fake news and compromising user data...read more

Derivatives are financial contracts that derive their value from an underlying asset or benchmark.

• Futures

• Options

• Swaps

• Forwards

• Credit derivatives

Settlement refers to the process of finalizing a transaction or resolving a dispute.

• Settlement can involve the exchange of money, goods, or services.

• It can also refer to the resolution of legal disputes or the finalization of a divorce.

• Examples of settlement include the payment of a settlement amount in a lawsuit or the transfer of ownership in a real estate transaction.

Derivatives are financial contracts whose value is derived from an underlying asset or security.

• Derivatives can be used for hedging or speculation.

• Examples include futures, options, swaps, and forwards.

• Derivatives can be traded on exchanges or over-the-counter.

• Derivatives can be complex and carry significant risk.

• Derivatives played a role in the 2008 financial crisis.