Finance

Month: April 2016

  • Post-Trade Transparency

    Concept of Post-Trade Transparency in Futures TradingIn this context of financial law, the following is a definition of Post-Trade Transparency: Describes markets where basic data on recent transactions (such as the price and terms of the transactions) is promptly and routinely reported to the […]

  • FIA

    ResourcesSee AlsoFutures Industry Association Futures Trading Consumer Protection Consumer Finance

  • Hedging

    Concept of Hedging in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A trading strategy which is designed to reduce or mitigate risk. A second transaction is entered into to offset the risk of the first.ResourcesSee AlsoDerivatives Contract

  • Reverse Crush Spread

    Concept of Reverse Crush Spread in Futures TradingIn this context of financial law, the following is a definition of Reverse Crush Spread: The sale of soybean futures and the simultaneous purchase of soybean oil and meal futures. See Crush Spread.

  • Producer

    Concept of Producer (AP) in Futures TradingIn this context of financial law, the following is a definition of Producer (AP): A large trader that declares itself a “Producer” on CFTC Form 40, which provides as examples, “farmer” and “miner.” A firm that extracts […]

  • Forward Months

    Concept of Forward Months in Futures TradingIn this context of financial law, the following is a definition of Forward Months: Futures contracts, currently trading, calling for later or distant delivery. See Deferred Futures, Back Months.

  • Expiration Date

    Concept of Expiration Date in Futures TradingIn this context of financial law, the following is a definition of Expiration Date: The date on which an option contract automatically expires; the last day an option may be exercised.

  • Financial Settlement

    ResourcesSee AlsoCash settlement Futures Trading Consumer Protection Consumer Finance

  • Options

    Knock-out OptionConcept of Knock-out 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 ceases to be in effect at the crossing of a […]

  • Path Dependent Option

    Concept of Path Dependent Option in Futures TradingIn this context of financial law, the following is a definition of Path Dependent Option: An option whose valuation and payoff depends on the realized price path of the underlying asset, such as an Asian option or a Lookback option.

  • Extrinsic Value

    ResourcesSee AlsoTime Value Futures Trading Consumer Protection Consumer Finance

  • Broker

    Concept of Broker in Futures TradingIn this context of financial law, the following is a definition of Broker: A person paid a fee or commission for executing buy or sell orders for a customer. In commodity futures trading, the term may refer to: (a) Floor broker, a person who actually executes […]

  • Deposit

    ResourcesSee AlsoInitial Margin Futures Trading Consumer Protection Consumer Finance

  • Payer

    Concept of Payer in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit swaption which allows the option buyer the right to buy protection on a certain date at a certain price.ResourcesSee AlsoDerivatives Contract

  • Closing Or Settlement Costs

    Closing or Settlement Costs in relation to Home Equity Lines of CreditIn this context, a definition of Closing or Settlement Costs is provided: Fees paid when you close (or sett le) on a loan. These fees may include application fees; title examination, abstract of title, title insurance, and […]