Finance

Month: June 2016

  • Financial Future

    Concept of Financial Future in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A futures contract based on a financial instrument such as a currency, interest rate, debt instrument or financial index.ResourcesSee AlsoDerivatives Contract

  • Knock-out Event

    Concept of Knock-out Event in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A feature added to a vanilla option which will result in, when a certain price (knock-out price) is reached by the underlying, the option either: no longer being […]

  • Deliverable Grades

    ResourcesSee AlsoContract Grades Futures Trading Consumer Protection Consumer Finance

  • Exotic Options

    Concept of Exotic Options in Futures TradingIn this context of financial law, the following is a definition of Exotic Options: Any of a wide variety of options with non-standard payout structures or other features, including Asian options and lookback options.

  • Calculation Period

    Concept of Calculation Period in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The number of days between payment dates or between effective date and the first payment date. The first day is generally included and the last day generally […]

  • Stock Index

    Stock Index Futures/optionsConcept of Stock Index Futures/options in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A financial contract based on the value of an underlying stock index such as the FTSE 100 in the UK, the Dow Jones and the S & […]

  • Inverted Market

    Concept of Inverted Market in Futures TradingIn this context of financial law, the following is a definition of Inverted Market: A futures market in which the nearer months are selling at prices higher than the more distant months; a market displaying ‘inverse carrying charges,’ characteristic […]

  • Option

    Concept of Option in Futures TradingIn this context of financial law, the following is a definition of Option: A contract that gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or other instrument at a specific price within a specified period […]

  • Single Dealer Platform

    Concept of Single Dealer Platform in Futures TradingIn this context of financial law, the following is a definition of Single Dealer Platform: An electronic trading venue in which one dealer is the counterparty to and market maker for all trades. Unlike trading facilities, the firm involved in […]

  • Close Out

    Concept of Close Out in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A transaction that leaves a zero net position in the market. Usually used in reference to the process following a default.ResourcesSee AlsoDerivatives Contract

  • Minimum Trading Functionality

    Concept of Minimum Trading Functionality in Futures TradingIn this context of financial law, the following is a definition of Minimum Trading Functionality: Refers to standards for market microstructure that all Swap Execution Facilities (SEFs) must offer. Generally, Minimum Trading […]

  • Stepping In

    Stepping inConcept of Stepping in in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process in a novation when a third party replaces one of the original parties to a transaction upon identical terms to the original transaction (see […]

  • Cross Currency Interest Rate Swap

    Cross Currency interest rate swapConcept of Cross Currency interest rate swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate swap (i.e. an agreement to exchange interest rate cash flows) where the interest payments are in […]

  • Combination

    Concept of Combination in Futures TradingIn this context of financial law, the following is a definition of Combination: Puts and calls held either long or short with different strike prices and/or expirations. Types of combinations include straddles and strangles.

  • C.I.F

    Concept of C.I.F in Futures TradingIn this context of financial law, the following is a definition of C.I.F: Cost, insurance, and freight paid to a point of destination and included in the price quoted.