GIGAMIND
Folder:
115 CFA
File:
115.080.01.02 Derivatives - Reading 48 - 2. Exchange-Traded versus Over-the-Counter Derivatives
2. Exchange-Traded versus Over-the-Counter Derivatives
a. define a derivative and distinguish between exchange-traded and over-the-counter derivatives;
What is an exchange-traded derivative?
Exchange-traded derivatives are created, authorized, and traded on a derivatives exchange, an organized facility for trading derivatives.
What is an over-the-counter derivative?
Over-the-counter derivatives are transactions created by any two parties off a derivatives exchange.
Source:
- CFA