Finance

Month: May 2016

  • Sample Grade

    Concept of Sample Grade in Futures TradingIn this context of financial law, the following is a definition of Sample Grade: Usually the lowest quality of a commodity, too low to be acceptable for delivery in satisfaction of futures contracts.

  • In Sight

    Concept of In Sight in Futures TradingIn this context of financial law, the following is a definition of In Sight: The amount of a particular commodity that arrives at terminal or central locations in or near producing areas. When a commodity is ‘in sight,’ it is inferred that reasonably prompt […]

  • Yield Curve

    Concept of Yield Curve in Futures TradingIn this context of financial law, the following is a definition of Yield Curve: A graphic representation of market yield for a fixed income security plotted against the maturity of the security. The yield curve is positive when long-term rates are higher […]

  • Trading Day

    Scheduled Trading DayConcept of Scheduled Trading Day in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A day on which each exchange and related exchange in respect of a trade are scheduled to be open for trading for their respective trading […]

  • Issue Price

    Concept of Issue Price in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The percentage of principal value at which the price of a new issue of securities is fixed.ResourcesSee AlsoDerivatives Contract

  • Beta

    Concept of Beta (Beta Coefficient) in Futures TradingIn this context of financial law, the following is a definition of Beta (Beta Coefficient): A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market, typically used as a measure of […]

  • Uncovered Option

    ResourcesSee AlsoNaked Option Futures Trading Consumer Protection Consumer Finance

  • Large Traders

    Concept of Large Traders in Futures TradingIn this context of financial law, the following is a definition of Large Traders: A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one exchange equaling or exceeding […]

  • Swaption

    Concept of Swaption in Futures TradingIn this context of financial law, the following is a definition of Swaption: An option to enter into a swap – i.e., the right, but not the obligation, to enter into a specified type of swap at a specified future date.

  • Pre-Trade Transparency

    Concept of Pre-Trade Transparency in Futures TradingIn this context of financial law, the following is a definition of Pre-Trade Transparency: Describes markets where basic data on proposed transactions (such as the prices and quantities of the best bid and offer) are generally available to […]

  • Wild Card Option

    Concept of Wild Card Option in Futures TradingIn this context of financial law, the following is a definition of Wild Card Option: Refers to a provision of any physical delivery Treasury bond or Treasury note futures contract that permits shorts to wait until as late as 8:00 p.m. Chicago time […]

  • Delivery, Current

    Concept of Delivery, Current in Futures TradingIn this context of financial law, the following is a definition of Delivery, Current: Deliveries being made during a present month. Sometimes current delivery is used as a synonym for nearby delivery.

  • Prop Shop

    Concept of Prop Shop in Futures TradingIn this context of financial law, the following is a definition of Prop Shop: A proprietary trading group, especially one where the group’s traders trade electronically at a physical facility operated by the group.

  • Bond

    Bond BasisConcept of Bond Basis in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest calculation using 30 days in each month and 360 days in each year. Many eurobonds use this as the basis on which interest is calculated. A bond […]

  • Back Spread

    Concept of Back Spread in Futures TradingIn this context of financial law, the following is a definition of Back Spread: A delta-neutral ratio spread in which more options are bought than sold. A back spread will be profitable if volatility increases. See Delta.