Financial Instrument Expertise
Why Choose Us?
Our comprehensive approach to financial instruments and funding solutions ensures that our clients receive the most reliable and efficient services. We are here to support your financial goals, whether you are looking to monetize financial instruments or participate in secure investment programs such as PPP or Managed Bank Guarantees.
Trust Ice Invest Capital Trading for tailored financial solutions and expertise that drive success.
A Financial Instrument is essentially a monetary contract between two or more parties. It represents an asset or capital that can be traded, settled, or modified based on agreed terms. Financial instruments serve as evidence of ownership, debt, or the right to future payments. They are the backbone of financial transactions across industries, enabling the movement of capital and facilitating trade.
1. Ownership Instruments: These include stocks and shares, which signify ownership in a company. They provide the holder with rights to a portion of the company’s profits and assets.
Debt Instruments: These represent a contractual right to receive cash or assets. Common examples include:
Bonds
Promissory Notes (PN)
Bank Guarantees (BG)
Standby Letters of Credit (SBLC)
Letters of Credit (LC)
Mid-Term Notes (MTN)
Long-Term Notes (LTN)
Short-Term Notes (STN)
3. Derivatives: These are contracts based on the value of underlying assets, such as:
Futures
Options
4. Exchange Instruments: Items like checks (cheques) and bills of exchange are used to facilitate the transfer of funds between parties.
Securities as Financial Instruments
Securities are a special category of financial instruments, representing ownership or debt that can be assigned a value and traded. These include stocks, bonds, and other tradable assets that can be bought, sold, or traded on financial markets.
Bonds
: Debt securities where an investor lends money to an issuer, receiving regular interest payments and the return of the principal upon maturity.
Stocks
Shares representing ownership in a company, giving holders rights to dividends and participation in decision-making
Loans and Deposits
Financial contracts involving the lending of money or depositing it with an institution, earning interest
Cash instruments are easy to value, as they are traded in liquid markets with transparent pricing mechanisms.
Derivative Instruments are financial contracts whose value is derived from the value and characteristics of one or more underlying assets or entities. These underlying entities can include assets, interest rates, or indexes.
The value of a derivative is dependent on the underlying asset, such as commodities, stocks, bonds, or currencies.
Derivatives are used for hedging risks or speculative purposes, providing protection against market volatility or allowing traders to profit from price movements.
Futures Contracts
Agreements to buy or sell an asset at a predetermined price on a future date.
Options Contracts
Contracts giving the holder the right, but not the obligation, to buy or sell an asset at a specified price before or at expiration.
Swaps
Contracts in which two parties exchange the cash flows or value of one asset for another
