Month: January 2016
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Agreement
Master Confirmation Agreement (mca)Concept of Master Confirmation Agreement (mca) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An agreement between two counterparties which sets out the terms and conditions that will apply between them […]
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Artificial Price
Concept of Artificial Price in Futures TradingIn this context of financial law, the following is a definition of Artificial Price: A futures price that has been affected by a manipulation and is thus higher or lower than it would have been if it reflected the forces of supply and demand.
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Markit
Concept of Markit in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A provider of independent data, portfolio valuations and OTC (over the counter) derivatives trade processing to the global financial markets.ResourcesSee AlsoDerivatives Contract
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Yield to Maturity
Concept of Yield to Maturity in Futures TradingIn this context of financial law, the following is a definition of Yield to Maturity: The rate of return an investor receives if a fixed income security is held to maturity.
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Trading Floor
Concept of Trading Floor in Futures TradingIn this context of financial law, the following is a definition of Trading Floor: A physical trading facility where traders make bids and offers via open outcry or the specialist system.
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Macro Fund
Concept of Macro Fund in Futures TradingIn this context of financial law, the following is a definition of Macro Fund: A hedge fund that specializes in strategies designed to profit from expected macroeconomic events.
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Physical Settlement
Concept of Physical Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The meeting of a settlement obligation under a derivative (i.e. an instrument that transfers risk from one party to the other) contract through the receipt or […]
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Deck
Concept of Deck in Futures TradingIn this context of financial law, the following is a definition of Deck: The orders for purchase or sale of futures and option contracts held by a floor broker.
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Core Principle
Concept of Core Principle in Futures TradingIn this context of financial law, the following is a definition of Core Principle: A provision of the Commodity Exchange Act with which a registered entity such as a designated contract market, swap execution facility, swap data repository, or […]
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Credit Limit
Credit Limit in relation to Home Equity Lines of CreditIn this context, a definition of Credit Limit is provided: The maximum amount that may be borrowed on a credit card or under a home equity line of credit plan.
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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 […]
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Merchant
Concept of Dealer/Merchant (AD) in Futures TradingIn this context of financial law, the following is a definition of Dealer/Merchant (AD): A large trader that declares itself a “Dealer/Merchant” on CFTC Form 40,which provides as examples “wholesaler, exporter/importer, shipper, […]
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Fixed Income Security
Concept of Fixed Income Security in Futures TradingIn this context of financial law, the following is a definition of Fixed Income Security: A security whose nominal (or current dollar) yield is fixed or determined with certainty at the time of purchase, typically a debt security
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Bankruptcy
Concept of Bankruptcy in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event used in all credit default swaps where the reference entity is a corporate (bankruptcy does not apply to Sovereign names). Bankruptcy events include the […]
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Notional Amount
Concept of Notional Amount in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The amount of principal underlying the derivative (i.e. an instrument that transfers risk from one party to the other) contract, to which interest rates are applied […]