Month: July 2016
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Early Closure
Concept of Early Closure in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The closure, on any exchange business day, of the exchange (or if an index transaction, the exchange(s) in respect of 20 percent or more of the securities comprising […]
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Cap
Cap (interest Rate) in relation to Home Equity Lines of CreditIn this context, a definition of Cap (interest Rate) is provided: A limit on the amount that your interest rate can increase. Two types of interest-rate caps exist. Periodic adjustment caps limit the interest-rate increase from one […]
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Standard Portfolio Analysis of Risk
Concept of SPAN (Standard Portfolio Analysis of Risk®) in Futures TradingIn this context of financial law, the following is a definition of SPAN (Standard Portfolio Analysis of Risk®): As developed by the Chicago Mercantile Exchange, the industry standard for calculating performance bond […]
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Transfer Trades
Concept of Transfer Trades in Futures TradingIn this context of financial law, the following is a definition of Transfer Trades: Entries made upon the books of futures commission merchants for the purpose of: (a) transferring existing trades from one account to another within the same firm […]
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Market-if-Touched Order
Concept of Market-if-Touched (MIT) Order in Futures TradingIn this context of financial law, the following is a definition of Market-if-Touched (MIT) Order: An order that becomes a market order when a particular price is reached. A sell MIT is placed above the market; a buy MIT is placed below […]
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Open Trade Equity
Concept of Open Trade Equity in Futures TradingIn this context of financial law, the following is a definition of Open Trade Equity: The unrealized gain or loss on open futures positions.
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Issuer
Concept of Issuer in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The borrower in a bond issue. For example a government, government agency, a bank or a corporate.ResourcesSee AlsoDerivatives Contract
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Trade Option
Concept of Trade Option in Futures TradingIn this context of financial law, the following is a definition of Trade Option: A commodity option transaction in which the purchaser is reasonably believed by the writer to be engaged in business involving use of that commodity or a related commodity.
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Interdelivery Spread
Concept of Interdelivery Spread in Futures TradingIn this context of financial law, the following is a definition of Interdelivery Spread: A spread involving two different months of the same commodity. Also called an intracommodity spread. See Spread.
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Commercial Paper
Concept of Commercial paper in Futures TradingIn this context of financial law, the following is a definition of Commercial paper: Short-term promissory notes issued in bearer form by large corporations, with maturities ranging from 5 to 270 days. Since the notes are unsecured, the commercial […]
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Riding the Yield Curve
Concept of Riding the Yield Curve in Futures TradingIn this context of financial law, the following is a definition of Riding the Yield Curve: Trading in an interest rate futures contract according to the expectations of change in the yield curve.
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Transaction Fee
Transaction Fee in relation to Home Equity Lines of CreditIn this context, a definition of Transaction Fee is provided: Fee charged each time a withdrawal or other speci? ed transaction is made on a line of credit, such as a balance transfer fee or a cash advance fee.
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Spot Month
Concept of Spot Month in Futures TradingIn this context of financial law, the following is a definition of Spot Month: The futures contract that matures and becomes deliverable during the present month. Also called Current Delivery Month.
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Warrants
Concept of Warrants in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) on an underlying asset which is in the form of a transferable security and which […]
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Ladder Option
Concept of Ladder Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) that locks in gains once the underlying asset reaches certain price […]