Month: January 2017

  • Date

    Backload Effective Date (bed)Concept of Backload Effective Date (bed) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The date agreed between two parties, at which point the counterparties “snapshot” a portfolio of trades and send […]

  • Member Rate

    Concept of Member Rate in Futures TradingIn this context of financial law, the following is a definition of Member Rate: Commission charged for the execution of an order for a person who is a member of or has trading privileges at the exchange.

  • Exchange

    Concept of Exchange in Futures TradingIn this context of financial law, the following is a definition of Exchange: A central marketplace such as a designated contract market with established rules and regulations where buyers and sellers meet to trade futures and options contracts or securities.

  • Point-and-Figure

    Concept of Point-and-Figure in Futures TradingIn this context of financial law, the following is a definition of Point-and-Figure: A method of charting that uses prices to form patterns of movement without regard to time. It defines a price trend as a continued movement in one direction until a […]

  • Copula

    Concept of Copula in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A statistical tool describing how the distribution of single risks join together to form joint risk distribution. Copulas are used in the valuation of synthetic CDO tranches […]

  • Security

    Concept of Security in Futures TradingIn this context of financial law, the following is a definition of Security: Generally, a transferable instrument representing an ownership interest in a corporation (equity security or stock) or the debt of a corporation, municipality, or sovereign. Other […]

  • Next Day

    Concept of Next Day in Futures TradingIn this context of financial law, the following is a definition of Next Day: A spot contract that provides for delivery of a commodity on the next calendar day or the next business day. Also called day ahead.

  • Bear

    Concept of Bear in Futures TradingIn this context of financial law, the following is a definition of Bear: One who expects a decline in prices. The opposite of a bull. A news item is considered bearish if it is expected to result in lower prices.

  • Diagonal Spread

    Concept of Diagonal Spread in Futures TradingIn this context of financial law, the following is a definition of Diagonal Spread: A spread between two call options or two put options with different strike prices and different expiration dates. See Horizontal Spread, Vertical Spread.

  • Major Security-Based Swap Participant

    ResourcesSee AlsoMajor Swap Participant and 7 USC 1a(32) Futures Trading Consumer Protection Consumer Finance

  • Co-Location

    Concept of Co-Location in Futures TradingIn this context of financial law, the following is a definition of Co-Location: The placement of servers used by market participants in close physical proximity to an electronic trading facility’s matching engine in order to facilitate high-frequency trading.

  • Term Sheet

    Concept of Term Sheet in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A document produced prior to execution indicating the financial terms and conditions of a specific transaction. The term sheet does not constitute a confirmation, or a […]

  • Pip

    Concept of Pip in Futures TradingIn this context of financial law, the following is a definition of Pip: The smallest price unit of a commodity or currency.

  • Gamma

    Concept of Gamma in Futures TradingIn this context of financial law, the following is a definition of Gamma: A measurement of how fast the delta of an option changes, given a unit change in the underlying futures price; the ‘delta of the delta.’

  • Licensed Warehouse

    Concept of Licensed Warehouse in Futures TradingIn this context of financial law, the following is a definition of Licensed Warehouse: A warehouse approved by an exchange from which a commodity may be delivered on a futures contract. See Regular Warehouse.