<p><span>Nigerian Exchange Limited (NGX) says it will introduce more futures contracts in response to market demand and readiness to provide investors with a deep and liquid market to hedge their portfolio. This is coming after the exchange announced the launch of West Africa’s first Exchange Traded Derivatives (ETDs) market with Equity Index Futures Contracts.</span></p>
By Aduragbemi Omiyale The ambience at the Nigerian Exchange (NGX) Limited on Customs Street, Lagos is oozing excitement and the reason is not far-fetched. The local bourse is launching the first Exchange Traded Derivatives (ETD) market in West Africa today, Thursday, April 14, 2022, with Equity Index Futures Contracts.
Defining various forms of risks in Kenya’s financial markets
Monday March 15 2021
Portfolio managers spend a considerable amount of time managing idiosyncratic risks (i.e. specific risks) in their portfolios.
Specific risk is unique to a particular financial transaction under consideration.
Portfolio managers mitigate specific risk through diversification, whereas systematic risk cannot be diversified.
Systemic risk influences the entire market at the same time.
Adverse changes in financial market prices and rates that negatively impact the value of your security or investment portfolio is classified as a market risk. Professional portfolio managers subdivide the market risk that they manage into equity price risk, interest-rate risk, foreign exchange risk, and commodity price risk.