Category: B
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Business Day
Bad (non Working) Business DayConcept of Bad (non Working) Business Day in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A day on which it is not possible to make payments, or days on which banks are not open for business. Bad business days […]
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Bull Spread
Concept of Bull Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Bull Spread: (a) A strategy involving the simultaneous purchase and sale of options of the same class and expiration date but different strike prices. In a bull vertical […]
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Bear Market Rally
Concept of Bear Market Rally in Futures TradingIn this context of financial law, the following is a definition of Bear Market Rally: A temporary rise in prices during a bear market. See Correction.
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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.
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Bad Debt
Definition of Bad DebtThis is the meaning of Bad Debt published by Marco Terry: Bad debt is debt that has a minimal or limited chance of being collected. Bad debt is often written off or sold to a collections agency.
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Broker Association
Concept of Broker Association in Futures TradingIn this context of financial law, the following is a definition of Broker Association: Two or more persons with exchange trading privileges who (a) share responsibility for executing customer orders; (b) have access to each other’s unfilled […]
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Buying Hedge
Concept of Buying Hedge (or Long Hedge) in Futures TradingIn this context of financial law, the following is a definition of Buying Hedge (or Long Hedge): Hedging transaction in which futures contracts are bought to protect against possible increases in the cost of commodities. See Hedger.
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Bucket Shop
Concept of Bucket Shop in Futures TradingIn this context of financial law, the following is a definition of Bucket Shop: A brokerage enterprise that ‘books’ (i.e., takes the opposite side of) retail customer orders without actually having them executed on an exchange.
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Basis Risk
Concept of Basis Risk in Futures TradingIn this context of financial law, the following is a definition of Basis Risk: The risk associated with an unexpected widening or narrowing of the basis between the time a hedge position is established and the time that it is lifted.
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Back Months
Concept of Back Months in Futures TradingIn this context of financial law, the following is a definition of Back Months: Futures delivery months other than the spot or front month (also called deferred months ).
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Bespoke Swap
Concept of Bespoke Swap in Futures TradingIn this context of financial law, the following is a definition of Bespoke Swap: A highly customized swap , usually constructed around the needs of a sophisticated customer with specialized risk exposure.
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Bullion
Concept of Bullion in Futures TradingIn this context of financial law, the following is a definition of Bullion: Bars or ingots of precious metals, usually cast in standardized sizes.
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Booking the Basis
Concept of Booking the Basis in Futures TradingIn this context of financial law, the following is a definition of Booking the Basis: A forward pricing sales arrangement in which the cash price is determined either by the buyer or seller within a specified time. At that time, the […]
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Box Spread
Concept of Box Spread in Futures TradingIn this context of financial law, the following is a definition of Box Spread: An option position in which the owner establishes a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are…
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Binary Settlement
Concept of Binary Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A payout under a derivative (i.e. an instrument that transfers risk from one party to the other) contract that is a fixed amount. This is also known as digital […]