Conversion Factors
This Issue in United States
Concept of Conversion Factors in Futures Trading
In this context of financial law, the following is a definition of Conversion Factors: Numbers published by a futures exchange to determine invoice prices for debt instruments deliverable against bond or note futures contracts. A separate conversion factor is published for each deliverable instrument. Invoice price = Contract Size X Futures Settlement Price X Conversion Factor + Accrued Interest.
Leave a Reply