Month: April 2016
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Confirmation
Concept of Confirmation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A written agreement between two counterparties setting out the terms of an individual OTC (over the counter) transaction.ResourcesSee AlsoDerivatives Contract
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Capping
Concept of Capping in Futures TradingIn this context of financial law, the following is a definition of Capping: Effecting transactions in an instrument underlying an option shortly before the option’s expiration date to depress or prevent a rise in the price of the instrument so that […]
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Spot Price
Concept of Spot Price in Futures TradingIn this context of financial law, the following is a definition of Spot Price: The price at which a physical commodity for immediate delivery is selling at a given time and place. See Cash Price.
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Total Return Swap
Concept of Total Return Swap in Futures TradingIn this context of financial law, the following is a definition of Total Return Swap: A type of credit derivative in which one counterparty receives the total return (interest payments and any capital gains or losses) from a specified reference […]
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Present Value
Concept of Present Value in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The current value of a sum which is to be paid (or received) on a future date. It is calculated as the amount that would have to be invested today at a specified rate […]
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Factoring Charge
Definition of Factoring ChargeThis is the meaning of Factoring Charge published by Marco Terry: A charge made to administer your invoices, collect them and process them.
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Limit Only
Concept of Limit Only in Futures TradingIn this context of financial law, the following is a definition of Limit Only: The definite price stated by a customer to a broker restricting the execution of an order to buy for not more than, or to sell for not less than, the stated price.
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Interest Rate Cap
Concept of Interest Rate Cap 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) product where the holder (buyer) is guaranteed a maximum borrowing cost […]
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Property Derivative
Property derivative (i.e. an instrument that transfers risk from one party to the other)Concept of Property derivative (i.e. an instrument that transfers risk from one party to the other) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A […]
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Composite
Concept of Composite in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A derivative (i.e. an instrument that transfers risk from one party to the other) trade which incorporates foreign exchange risk into the payout. Final and initial levels […]
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Permitted Transaction
Concept of Permitted Transaction in Futures TradingIn this context of financial law, the following is a definition of Permitted Transaction: This term is used in rules for swap execution facilities to describe illiquid or bespoke swaps and swaps transactions that are not subject to the trade […]
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Single Stock Future
Concept of Single Stock Future in Futures TradingIn this context of financial law, the following is a definition of Single Stock Future: A futures contract on a single stock as opposed to a stock index. Single stock futures were illegal in the U.S. prior to the passage of the Commodity Futures […]
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Primary Market
Concept of Primary Market in Futures TradingIn this context of financial law, the following are some alternative definitions of Primary Market: (a) For producers, their major purchaser of commodities; (b) to processors, the market that is the major supplier of their commodity needs; and (c) in […]
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Emergency
Concept of Emergency in Futures TradingIn this context of financial law, the following is a definition of Emergency: Any market occurrence or circumstance which requires immediate action and threatens or may threaten such things as the fair and orderly trading in, or the liquidation of, or […]
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Effective Date
Concept of Effective Date in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The date on which obligations under a derivative (i.e. an instrument that transfers risk from one party to the other) transaction begin to accrue or take […]