Finance

Category: H

  • Hybrid Basket

    Concept of Hybrid Basket in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A basket containing both stocks and indices or underlyings from a combination of asset classes (such as a foreign exchange rate or a commodity).ResourcesSee […]

  • Haircut

    Concept of Haircut in Futures TradingIn this context of financial law, the following is a definition of Haircut: In computing the value of assets for purposes of capital, segregation, or margin requirements, a percentage reduction from the stated value (e.g., book value or market value) to […]

  • Hedge Ratio

    Concept of Hedge Ratio in Futures TradingIn this context of financial law, the following is a definition of Hedge Ratio: Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.

  • Hybrid Instrument

    Concept of Hybrid Instrument in Futures TradingIn this context of financial law, the following is a definition of Hybrid Instrument: A security having one or more payments indexed to the value, level, or rate of, or providing for the delivery of, one or more commodities. See 7 USC 1a(29).

  • Heavy

    Concept of Heavy in Futures TradingIn this context of financial law, the following is a definition of Heavy: A market in which prices are demonstrating either an inability to advance or a slight tendency to decline.

  • Historical Volatility

    Concept of Historical Volatility in Futures TradingIn this context of financial law, the following is a definition of Historical Volatility: A statistical measure of the volatility (specifically, the annualized standard deviation) of a futures contract, security, or other instrument over a […]

  • Head and Shoulders

    Concept of Head and Shoulders in Futures TradingIn this context of financial law, the following is a definition of Head and Shoulders: In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and […]

  • Hedge Fund

    Concept of Hedge Fund in Futures TradingIn this context of financial law, the following is a definition of Hedge Fund: A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically […]

  • Hard Position Limit

    Concept of Hard Position Limit in Futures TradingIn this context of financial law, the following is a definition of Hard Position Limit: A Speculative Position Limit whose exceedance is a violation of exchange rules and consequently triggers predefined penalties. This is in contrast to a […]

  • Hedger

    Concept of Hedger in Futures TradingIn this context of financial law, the following is a definition of Hedger: A market participant who enters into positions in a futures or other derivatives market opposite to positions held in the cash market to minimize the risk of financial loss from an […]

  • Hedging

    Concept of Hedging in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A trading strategy which is designed to reduce or mitigate risk. A second transaction is entered into to offset the risk of the first.ResourcesSee AlsoDerivatives Contract

  • Hog-Corn Ratio

    ResourcesSee AlsoFeed Ratio Futures Trading Consumer Protection Consumer Finance

  • Henry Hub

    Concept of Henry Hub in Futures TradingIn this context of financial law, the following is a definition of Henry Hub: A natural gas pipeline hub in Louisiana that serves as the delivery point for New York Mercantile Exchange natural gas futures contracts and often serves as a benchmark for […]

  • Hedge Exemption

    Concept of Hedge Exemption in Futures TradingIn this context of financial law, the following is a definition of Hedge Exemption: An exemption from speculative position limits for bona fide hedgers and certain other persons who meet the requirements of exchange and CFTC rules.

  • Hidden Quantity Order

    Concept of Hidden Quantity Order in Futures TradingIn this context of financial law, the following is a definition of Hidden Quantity Order: An order placed on an electronic trading system whereby only a portion of the order is visible to other market participants. As the displayed part of the […]