eClerx Interview Questions, Process, and Tips

Derivatives contracts are needed to manage risk and provide opportunities for speculation and hedging in financial markets.

• Derivatives contracts allow investors to manage risk by providing a way to hedge against potential losses.

• They also provide opportunities for speculation, allowing investors to profit from price movements without owning the underlying asset.

• Put options give the holder the right, but not the obligat...read more

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

• Derivatives can be used for hedging or speculation.

• Examples of derivatives include futures, options, and swaps.

• 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.

Derivatives are financial instruments that derive their value from an underlying asset or security.

• Futures contracts

• Options contracts

• Swaps

• Forwards contracts

• Credit derivatives

Capital market is a platform where long-term securities are traded between investors and issuers.

• It is a market for buying and selling of long-term securities such as stocks, bonds, and debentures.

• It provides a platform for companies to raise capital by issuing securities to investors.

• It helps in the efficient allocation of capital by directing savings towards productive investments.

• Examples include stock exchanges lik...read more

Futures and options are financial contracts that allow investors to buy or sell assets at a predetermined price and date.

• Futures are contracts to buy or sell an asset at a future date and price.

• Options give the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price and date.

• Both futures and options are used for hedging or speculation in financial markets.

• Examples include commodity fut

The interview questions cover various financial concepts such as capital market, trade life cycle, options, mutual funds, and bond market.

• Capital market refers to the market for buying and selling of securities such as stocks and bonds.

• Trade life cycle involves the steps involved in a trade from initiation to settlement.

• Option is a contract that gives the buyer the right, but not the obligation, to buy or sell an under...read more