Finance

Category: V

  • Variable Rate

    Variable Rate in relation to Home Equity Lines of CreditIn this context, a definition of Variable Rate is provided: An interest rate that changes periodically in relation to an index, such as the prime rate. Payments may increase or decrease accordingly.

  • Volatility Trading

    Concept of Volatility Trading in Futures TradingIn this context of financial law, the following is a definition of Volatility Trading: Strategies designed to speculate on changes in the volatility of the market rather than the direction of the market.

  • Variance Option

    Concept of Variance Option 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) that uses the variance (being the volatility squared) of an underlying’s […]

  • Volatility Quote Trading

    Concept of Volatility Quote Trading in Futures TradingIn this context of financial law, the following is a definition of Volatility Quote Trading: Refers to the quoting of bids and offers on option contracts in terms of their implied volatility rather than as prices.

  • Vertical Spread

    Concept of Vertical Spread in Futures TradingIn this context of financial law, the following is a definition of Vertical Spread: Any of several types of option spread involving the simultaneous purchase and sale of options of the same class and expiration date but different strike prices, […]

  • Vega

    Concept of Vega in Futures TradingIn this context of financial law, the following is a definition of Vega: Coefficient measuring the sensitivity of an option value to a change in volatility.

  • Visible Supply

    Concept of Visible Supply in Futures TradingIn this context of financial law, the following is a definition of Visible Supply: Usually refers to supplies of a commodity in licensed warehouses. Often includes floats and all other supplies ‘in sight’ in producing areas. See Invisible Supply.

  • Volcker Rule

    Concept of Volcker Rule in Futures TradingIn this context of financial law, the following is a definition of Volcker Rule: Named for former United States Federal Reserve Chairman Paul Volcker, the Volcker Rule is a section of the Dodd-Frank Act that generally prohibits banking entities from […]

  • Valuation

    Valuation TimeConcept of Valuation Time in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The time at which the collateral portfolio and collateral balance is valued for the purposes of a collateral call.ResourcesSee AlsoDerivatives Contract

  • Vanilla

    Vanilla (flow/market Standard)Concept of Vanilla (flow/market Standard) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A derivative (i.e. an instrument that transfers risk from one party to the other) transaction which has a very basic […]

  • Valuation Date

    Concept of Valuation Date in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A date upon which a collateral call or the value of an asset is determined.ResourcesSee AlsoDerivatives Contract

  • Value At Risk

    Value at Risk (var)Concept of Value at Risk (var) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A statistical measure which calculates the maximum loss that any financial instrument may be expected to suffer over a defined period with a […]

  • Valuation Percentage (haircut)

    Valuation Percentage (haircut)Concept of Valuation Percentage (haircut) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The percentage by which the market value of the collateral will be reduced to allow for price volatility and instrument […]

  • Variation Margin

    Concept of Variation Margin in Futures TradingIn this context of financial law, the following is a definition of Variation Margin: Payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing […]

  • Volume

    Concept of Volume in Futures TradingIn this context of financial law, the following is a definition of Volume: The number of contracts traded during a specified period of time. It is most commonly quoted as the number of contracts traded, but for some physical commodities may be quoted or as […]