I.23. The concept of a tool.

The instrument on the Moscow Stock Exchange is called the actual subject of trade. They can be the positions marked in Table 6.

Table 6. Instruments of Russian exchanges.

n/aName of the toolsDescription of the tool
Stock Market Instruments
1Shares of Russian companiesOrdinary and preferred shares. Buying shares allows you to make money on fluctuations in their value and on dividend payments
2Shares of foreign companiesPurchase of foreign shares with payment of only Russian taxes and taxes on dividends on foreign shares.
3Depository receiptsCertificate confirming ownership of shares and bonds
4Mutual fund investment unitsTransfer of their funds for investment by a management company by a mutual investment fund
5MCP – mortgage certificates of participationA mortgage certificate of participation (MCP) is a registered security certifying its owner’s share in the right of common ownership of mortgage coverage, the right to demand from the person who issued it proper trust management of mortgage coverage, the right to receive funds received in fulfillment of obligations, the requirements for which constitute mortgage coverage, as well as other rights.
6ETFThe abbreviation ETF stands for exchange traded fund – an exchange-traded investment fund. Each such fund has an underlying asset, which is stocks, bonds, raw materials, etc. Simply put, it is a tool that represents a ready-made basket of investments. It works according to the following scheme: The management company decides to create a fund. The allocated funds are used to purchase an asset, for example, securities of companies in a certain industry. There is an issue of the fund’s shares, they are sold on the stock exchange. The investor acquires the fund’s shares. Its final profit or loss is determined by the difference in price between the purchase and subsequent sale, as well as the dividends received during the retention period, if the fund’s policy assumes their payment.
7FLBFederal loan bonds – promissory notes of Russia with payment of coupons.
8Regional and municipal bondsPromissory notes of regions and municipalities of Russia
9Corporate bondsPromissory notes of large Russian firms
10MBSMortgage-backed securities. Banks also issue central banks to increase the amount of funds in circulation. In fact, they resell debts to third parties for a small percentage. This allows the credit institution to maintain the previous level of business activity, receive additional investments and strengthen its own position in the market.
11Corporate EurobondsEurobonds (or Eurobonds) are fixed-yield debt securities that are traded on the stock market. The difference from ordinary bonds is that they are issued in a currency other than the currency of the state where the issuer is located. The currency for Eurobonds can be any. Large Russian companies can issue Eurobonds denominated in both euros and dollars, pounds sterling or yuan.
12Sovereign Eurobonds of the Russian FederationGovernment Eurobonds or Eurobonds are debt obligations of the Ministry of Finance denominated in one of the world’s reserve currencies.
Derivatives Market instruments
1Index futuresFutures is a derivative financial instrument, a contract to buy/sell an underlying asset at a certain date in the future, but at the current market price. Fixing the price of a commodity that will be delivered after a certain period in the future, at the time of the transaction — this is the meaning of a futures contract. For us, futures are interesting with low commissions.
2Stock futures
3Futures on the volatility of the Russian market
4Stock futures and investment units of foreign issuers
5Oil futures
6Precious metals futures
7Agricultural products futures
8Non-ferrous metals contracts
9Natural gas futures
10Wheat futures
11Futures and options on currency pairs
12RUONIA Supply Futures
13Futures on the three-month loan rate
14FLB basket Futures
15Futures for the RUSFAR bet
16Options on various indicesReflects bets on the rise/fall of index futures
17Options on shares of Russian issuersReflects bets on the growth/fall of futures on Russian stocks
18US Dollar OptionsReflects bets on the rise/fall of USD futures
19Gold optionsReflects bets on the rise/fall of gold futures
20Silver OptionsReflects bets on the rise/fall of silver futures
21Oil optionsReflects bets on the rise/fall of oil futures
Foreign exchange market
1USD/RUB pairSelling/buying dollars
2EUR/RUB pairSelling/buying euros
3CNY/RUB pairSale/purchase of yuan
4Also HKD, GBP, CHF, BYR, KZT, TRY, JPY, GLD, SLV and pairs to themSale/purchase Hong Kong dollar, British pound, Swiss front, Belarusian ruble, Kazakh tenge, Turkish lira, Japanese yen, goldario (cryptocurrency), silverway (cryptocurrency)

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