Finance

Month: February 2016

  • Advance

    Definition of AdvanceThis is the meaning of Advance published by Marco Terry: This is the amount of money that the factoring company advances to your company when they buy the invoice. The advance is often a percentage of the gross value of the invoice and is wired shortly after the invoice is […]

  • Protection Buyer

    Concept of Protection Buyer in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The credit default swap counterparty that pays another counterparty to compensate them in the event that the reference entity suffers a credit event.ResourcesSee […]

  • Deliverable Stocks

    Concept of Deliverable Stocks in Futures TradingIn this context of financial law, the following is a definition of Deliverable Stocks: Commodities located in exchange-approved storage for which receipts may be used in making delivery on futures contracts. In the cotton trade, the term refers to […]

  • Position Limit

    ResourcesSee AlsoSpeculative Position Limit Futures Trading Consumer Protection Consumer Finance

  • Delivery

    Concept of Delivery, Nearby in Futures TradingIn this context of financial law, the following is a definition of Delivery, Nearby: The nearest traded month, the front month. In plural form, one of the nearer trading months.

  • Exchange of Futures for Cash

    ResourcesSee AlsoExchange for Physicals Futures Trading Consumer Protection Consumer Finance

  • Market Disruption

    Concept of Market Disruption in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A market disruption event occurs when there is, during the one hour period before valuation, either a trading disruption or an exchange disruption; or if there is […]

  • Time Value

    Concept of Time Value in Futures TradingIn this context of financial law, the following is a definition of Time Value: That portion of an option’s premium that exceeds the intrinsic value. The time value of an option reflects the probability that the option will move into-the-money. Therefore, […]

  • Book Transfer

    Concept of Book Transfer in Futures TradingIn this context of financial law, the following is a definition of Book Transfer: A series of accounting or bookkeeping entries used to settle a series of cash market transactions.

  • Futures Price

    Concept of Futures Price in Futures TradingIn this context of financial law, the following are some alternative definitions of Futures Price: (a) Commonly held to mean the price of a commodity for future delivery that is traded on a futures exchange; (b) the price of any futures contract.

  • Unable

    Concept of Unable in Futures TradingIn this context of financial law, the following is a definition of Unable: All orders not filled by the end of a trading day are deemed ‘unable’ and void, unless they are designated GTC ( Good Till Canceled) or open.

  • Call Option

    Concept of Call 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) which gives the buyer (holder) the right but not the obligation to buy a […]

  • Ring

    ResourcesSee Alsopit Futures Trading Consumer Protection Consumer Finance

  • E-Local

    Concept of E-Local in Futures TradingIn this context of financial law, the following is a definition of E-Local: A person with trading privileges at an exchange with an electronic trading facility who trades electronically (rather than in a pit or ring) for his or her own account, often at a […]

  • Portfolio Compression Service

    Concept of Portfolio Compression Service in Futures TradingIn this context of financial law, the following is a definition of Portfolio Compression Service: A service that helps market participants identify positions in a portfolio of OTC derivatives that are redundant after netting across a […]