Finance

Month: April 2016

  • Multilateral Clearing Organization

    ResourcesSee AlsoClearing Organization Futures Trading Consumer Protection Consumer Finance

  • Stop Order

    Concept of Stop Order in Futures TradingIn this context of financial law, the following is a definition of Stop Order: This is an order that becomes a market order when a particular price level is reached. A sell stop is placed below the market, a buy stop is placed above the market. Sometimes […]

  • Designated Self-Regulatory Organization

    Concept of Designated Self-Regulatory Organization (DSRO) in Futures TradingIn this context of financial law, the following is a definition of Designated Self-Regulatory Organization (DSRO): Self-regulatory organizations (i.e., the commodity exchanges and registered futures associations) that […]

  • Variable Price Limit

    Concept of Variable Price Limit in Futures TradingIn this context of financial law, the following is a definition of Variable Price Limit: A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.

  • CPO

    ResourcesSee AlsoCommodity Pool Operator Futures Trading Consumer Protection Consumer Finance

  • Called

    Concept of Called in Futures TradingIn this context of financial law, the following is a definition of Called: Another term for exercised when an option is a call. In the case of an option on a physical, the writer of a call must deliver the indicated underlying commodity when the option is […]

  • Restructuring

    Concept of Restructuring in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event triggered when a reference entity restructures its debt in agreement with its creditors.ResourcesSee AlsoDerivatives Contract

  • Interest Rate Straddle

    Concept of Interest Rate Straddle in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate transaction where the buyer pays a premium to the seller to buy a cap and a floor with identical details including the cap and floor rates. […]

  • One-to-Many

    Concept of One-to-Many in Futures TradingIn this context of financial law, the following is a definition of One-to-Many: Refers to a proprietary trading platform in which the platform operator posts bids and offers for commodities, derivatives, or other instruments and serves as a counterparty […]

  • Short Form

    Short Form (transaction Supplement)Concept of Short Form (transaction Supplement) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A confirmation that supplements an MCA and incorporates by reference the terms of such MCA. The MCA and […]

  • Certificate of Deposit

    Concept of Certificate of Deposit (CD) in Futures TradingIn this context of financial law, the following is a definition of Certificate of Deposit (CD): A time deposit with a specific maturity traditionally evidenced by a certificate. Large denomination CDs are typically negotiable.

  • Cash-out Refinancing

    Cash-out Refinancing in the Context of Mortgage RefinancingsIn this context, a definition of Cash-out Refinancing may be distilled, worded as follows: When refinancing, taking a loan for more than you owe on your existing mortgage. Your existing mortgage is paid off and you receive an […]

  • Risk Ratio

    Concept of Risk/Reward Ratio in Futures TradingIn this context of financial law, the following is a definition of Risk/Reward Ratio: The relationship between the probability of loss and profit. This ratio is often used as a basis for trade selection or comparison.

  • Trioptima

    Concept of Trioptima in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): Third party vendor providing post trade services to the derivatives market in an effort to reduce costs and operational risks for their subscribers. Services include […]

  • Program Trading

    Concept of Program Trading in Futures TradingIn this context of financial law, the following is a definition of Program Trading: The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called program trading when index funds and other institutional […]