Finance

Category: P

  • Price Banding

    Concept of Price Banding in Futures TradingIn this context of financial law, the following is a definition of Price Banding: A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price […]

  • Price Differential

    Strike Price DifferentialConcept of Strike Price Differential in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the settlement price and the strike price at the point of option exercise.ResourcesSee AlsoDerivatives Contract

  • Platform

    Thunderhead NowConcept of Thunderhead Now in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A technology platform used for OTC (over the counter) trade confirmations and term sheet generation. Thunderhead NOW provides the straight through […]

  • 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 […]

  • 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.

  • Preceding Business Day Convention

    Concept of Preceding Business Day Convention in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A type of business day convention where payment days that fall on a bad business day roll backwards to the preceding good business day.ResourcesSee […]

  • Proprietary Account

    Concept of Proprietary Account in Futures TradingIn this context of financial law, the following is a definition of Proprietary Account: An account that a futures commission merchant (FCM) carries for itself or a closely related person, such as a parent, subsidiary or affiliate company, general […]

  • Price Basing

    Concept of Price Basing in Futures TradingIn this context of financial law, the following is a definition of Price Basing: A situation where producers, processors, merchants, or consumers of a commodity establish commercial transaction prices based on the futures prices for that or a related […]

  • Pool Factors

    Concept of Pool Factors in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The current principal balance of a particular asset backed bond outstanding divided by the original issued balance of such bonds expressed as a percentage.ResourcesSee […]

  • Purchase Order Financing

    Definition of Purchase Order FinancingThis is the meaning of Purchase Order Financing published by Marco Terry: A type of funding that finaces the supplier costs associated with a purchase order. This type of funding can only be used when the PO is for purchasing finished goods. PO financing […]

  • Par Value

    Concept of Par Value in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The principal amount of a bond. Also known as the face value.ResourcesSee AlsoDerivatives Contract

  • Portfolio Margining

    Concept of Portfolio Margining in Futures TradingIn this context of financial law, the following is a definition of Portfolio Margining: A method for setting margin requirements that evaluates positions as a group or portfolio and takes into account the potential for losses on some positions to […]

  • Point Balance

    Concept of Point Balance in Futures TradingIn this context of financial law, the following is a definition of Point Balance: A statement prepared by futures commission merchants to show profit or loss on all open contracts using an official closing or settlement price, usually at calendar month end.

  • Position

    Concept of Position in Futures TradingIn this context of financial law, the following is a definition of Position: An interest in the market, either long or short, in the form of one or more open contracts.

  • Positive Carry

    Concept of Positive Carry in Futures TradingIn this context of financial law, the following is a definition of Positive Carry: The cost of financing a financial instrument (the short-term rate of interest), where the cost is less than the current return of the financial instrument. See Carrying […]