Month: October 2016

  • Out of Position

    ResourcesSee AlsoIn Position Futures Trading Consumer Protection Consumer Finance

  • Interest Rate Collar

    Concept of Interest Rate Collar 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) product where the holder (buyer) is guaranteed a maximum and minimum […]

  • Approved Delivery Facility

    Concept of Approved Delivery Facility in Futures TradingIn this context of financial law, the following is a definition of Approved Delivery Facility: Any bank, stockyard, mill, storehouse, plant, elevator, or other depository that is authorized by an exchange for the delivery of commodities […]

  • Agricultural Trade Option Merchant

    Concept of Agricultural Trade Option Merchant in Futures TradingIn this context of financial law, the following is a definition of Agricultural Trade Option Merchant: Any person that is in the business of soliciting or entering option transactions involving an enumerated agricultural commodity […]

  • Swap

    Concept of Swap in Futures TradingIn this context of financial law, the following is a definition of Swap: The statutory definition of “swap” is detailed and comprehensive, though certain agreements, contracts, and transactions are excluded from the definition. It includes, for […]

  • Risk Factor

    ResourcesSee AlsoDelta Futures Trading Consumer Protection Consumer Finance

  • Intracommodity Spread

    ResourcesSee AlsoSpread and Interdelivery Spread Futures Trading Consumer Protection Consumer Finance

  • Reference Entity

    Concept of Reference Entity in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The underlying company or Sovereign which issues the debt obligation or obligations which constitute the reference obligation(s) under a credit […]

  • Non Recourse Factoring

    Definition of Non Recourse FactoringThis is the meaning of Non Recourse Factoring published by Marco Terry: A form of factoring where the factoring company will absorb any credit losses that result from a customer defaulting on an invoice. The types of credit losses that are absorbed vary by […]

  • Forex

    Concept of Forex in Futures TradingIn this context of financial law, the following is a definition of Forex: Refers to the over-the-counter market for foreign exchange transactions. Also called the foreign exchange market.

  • Implied Volatility

    Concept of Implied Volatility in Futures TradingIn this context of financial law, the following is a definition of Implied Volatility: The volatility of a futures contract, security, or other instrument as implied by the prices of an option on that instrument, calculated using an options […]

  • Feed Ratio

    Concept of Feed Ratio in Futures TradingIn this context of financial law, the following is a definition of Feed Ratio: The relationship of the cost of feed, expressed as a ratio to the sale price of animals, such as the corn-hog ratio. These serve as indicators of the profit margin or lack of […]

  • Execution

    Execution Only (give-up Agreement)Concept of Execution Only (give-up Agreement) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A tri-party agreement that is signed by the executing broker, the clearing broker and the client. This agreement […]

  • Broad-Based Security Index

    Concept of Broad-Based Security Index in Futures TradingIn this context of financial law, the following is a definition of Broad-Based Security Index: Any index of securities that does not meet the legal definition of narrow-based security index.

  • Tenderable Grades

    ResourcesSee AlsoContract Grades Futures Trading Consumer Protection Consumer Finance