Finance

Month: March 2016

  • Back Office

    Concept of Back Office in Futures TradingIn this context of financial law, the following is a definition of Back Office: The department in a financial institution that processes and deals and handles delivery, settlement, and regulatory procedures.

  • Blind Auction

    Concept of Blind Auction in Futures TradingIn this context of financial law, the following is a definition of Blind Auction: A blind auction, also called a sealed bid auction, is a market structure in which the traders place offers to buy or sell without seeing current bids and offers, as […]

  • Scalper

    Concept of Scalper in Futures TradingIn this context of financial law, the following is a definition of Scalper: Traditionally, a speculator, often with exchange trading privileges (a local), who buys and sells rapidly, with small profits or losses, holding his positions for only a short time […]

  • Security Future

    Concept of Security Future in Futures TradingIn this context of financial law, the following is a definition of Security Future: A contract for the sale or future delivery of a single security or of a narrow-based security index. See 7 USC 1a(31). See 7 USC 1a(44).

  • Eurocurrency

    Concept of Eurocurrency in Futures TradingIn this context of financial law, the following is a definition of Eurocurrency: Certificates of Deposit (CDs), bonds, deposits, or any capital market instrument issued outside of the national boundaries of the currency in which the instrument is […]

  • Shock Absorber

    Concept of Shock Absorber in Futures TradingIn this context of financial law, the following is a definition of Shock Absorber: A temporary restriction in the trading of certain stock index futures contracts that becomes effective following a significant intraday decrease in stock index futures […]

  • Coupon

    Concept of Coupon (Coupon Rate) in Futures TradingIn this context of financial law, the following is a definition of Coupon (Coupon Rate): A fixed dollar amount of interest payable per annum, stated as a percentage of principal value, usually payable in semiannual installments.

  • Bid Price

    Concept of Bid Price in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The price at which a trader or market maker is willing to purchase a contract.ResourcesSee AlsoDerivatives Contract

  • Floor Trader

    Concept of Floor Trader in Futures TradingIn this context of financial law, the following is a definition of Floor Trader: A person with exchange trading privileges who executes his own trades by being personally present in the pit or ring for futures trading. See Local. See 7 USC 1a(23).

  • Introducing Broker

    Concept of Introducing Broker (IB) in Futures TradingIn this context of financial law, the following is a definition of Introducing Broker (IB): A person (other than a person registered as an associated person of a futures commission merchant) who is engaged in soliciting or in accepting orders […]

  • Partial Cash Settlement

    Concept of Partial Cash Settlement in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The cash amount paid by a buyer to a seller when a buyer of protection is unable to deliver all of the deliverable obligations. The cash value is determined […]

  • Option Buyer

    Concept of Option Buyer in Futures TradingIn this context of financial law, the following is a definition of Option Buyer: The person who buys calls, puts, or any combination of calls and puts.

  • Correlation

    Concept of Correlation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A statistical measure of the relationship between the price movements in two financial instruments.ResourcesSee AlsoDerivatives Contract

  • Fixed Income

    Concept of Fixed Income in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The interest calculated as a constant specified percentage of the principal amount, paid at the end of specified periods on a security. The periods are usually annual […]

  • Adjustable-rate Mortgage

    Adjustable-rate Mortgage (ARM) in the Context of Mortgage RefinancingsIn this context, a definition of Adjustable-rate Mortgage (ARM) may be distilled, worded as follows: A mortgage that does not have a fixed interest rate. The rate changes during the life of the loan based on movements in an […]