Finance

Month: September 2016

  • Invoice Factoring

    Definition of Invoice FactoringAnother term for factoring. See factoring.

  • Notional Principal

    Concept of Notional Principal in Futures TradingIn this context of financial law, the following is a definition of Notional Principal: In an interest rate swap, forward rate agreement, or other derivative instrument, the amount or, in a currency swap, each of the amounts to which interest rates […]

  • Off Exchange

    ResourcesSee AlsoOver-the-Counter Futures Trading Consumer Protection Consumer Finance

  • Synthetic Futures

    Concept of Synthetic Futures in Futures TradingIn this context of financial law, the following is a definition of Synthetic Futures: A position created by combining call and put options. A synthetic long futures contract is created by combining a long call option and a short put option for the […]

  • Open Order

    Concept of Open Order (or Orders) in Futures TradingIn this context of financial law, the following is a definition of Open Order (or Orders): An order that remains in force until it is canceled or until the futures contracts expire. See Good Till Canceled and Good This Week orders.

  • Limit Order

    Concept of Limit Order in Futures TradingIn this context of financial law, the following is a definition of Limit Order: An order in which the customer specifies a minimum sale price or maximum purchase price, as contrasted with a market order, which implies that the order should be filled as […]

  • Speculative Limit

    ResourcesSee AlsoSpeculative Position Limit Futures Trading Consumer Protection Consumer Finance

  • Locked-In

    Concept of Locked-In in Futures TradingIn this context of financial law, the following is a definition of Locked-In: A hedged position that cannot be lifted without offsetting both sides of the hedge (spread). See Hedging. Also refers to being caught in a limit price move.

  • Factoring

    Definition of FactoringThis is the meaning of Factoring published by Marco Terry: A form of business funding where a company finances their accounts receivable by selling their invoices to an intermediary called a factoring company.

  • Convergence

    Concept of Convergence in Futures TradingIn this context of financial law, the following is a definition of Convergence: The tendency for prices of physicals and futures to approach one another, usually during the delivery month. Also called a ‘narrowing of the basis.’

  • Nearby Delivery Month

    Concept of Nearby Delivery Month in Futures TradingIn this context of financial law, the following is a definition of Nearby Delivery Month: The month of the futures contract closest to maturity; the front month or lead month.

  • Delivery Price

    Concept of Delivery Price in Futures TradingIn this context of financial law, the following is a definition of Delivery Price: The price fixed by the clearing organization at which deliveries on futures are invoiced—generally the price at which the futures contract is settled when […]

  • Physical Commodity

    Concept of Physical Commodity in Futures TradingIn this context of financial law, the following is a definition of Physical Commodity: A tangible commodity rather than a financial commodity, typically an agricultural commodity, energy commodity or a metal.

  • GPM

    ResourcesSee AlsoGross Processing Margin Futures Trading Consumer Protection Consumer Finance

  • Recourse Factoring

    Definition of Recourse FactoringThis is the meaning of Recourse Factoring published by Marco Terry: A form of factoring where the factoring company will not absorb any credit losses that result from a customer defaulting on an invoice. See non recourse factoring.