Finance

Month: July 2016

  • Minimum Price Fluctuation

    Concept of Minimum Price Fluctuation (Minimum Tick) in Futures TradingIn this context of financial law, the following is a definition of Minimum Price Fluctuation (Minimum Tick): Smallest increment of price movement possible in trading a given contract.

  • Charting

    Concept of Charting in Futures TradingIn this context of financial law, the following is a definition of Charting: The use of graphs and charts in the technical analysis of futures markets to plot trends of price movements, average movements of price, volume of trading, and open interest.

  • Treasury Notes

    Concept of Treasury Notes in Futures TradingIn this context of financial law, the following is a definition of Treasury Notes: Same as Treasury bonds except that Treasury notes are medium-term (more than one year but not more than ten years).

  • Gross

    Concept of Gross 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) or asset position expressed without netting bought and sold trades.ResourcesSee […]

  • Double Hedging

    Concept of Double Hedging in Futures TradingIn this context of financial law, the following is a definition of Double Hedging: As used by the CFTC, it implies a situation where a trader holds a long position in the futures market in excess of the speculative position limit as an offset to a […]

  • End User Exception

    Concept of End User Exception in Futures TradingIn this context of financial law, the following is a definition of End User Exception: The Dodd-Frank Act’s provision that exempts non-financial entities that are end users from the clearing mandate thus allowing end users to execute swaps […]

  • Gold Fixing

    Concept of Gold Fixing (Gold Fix) in Futures TradingIn this context of financial law, the following is a definition of Gold Fixing (Gold Fix): The setting of the gold price at 10:30 a.m. (first fixing) and 3:00 p.m. (second fixing) in London by representatives of the London gold market.

  • Security-Based Swap

    Concept of Security-Based Swap in Futures TradingIn this context of financial law, the following is a definition of Security-Based Swap: Any agreement, contract, or transaction that otherwise meets the definition of a swap but is also designated a security by the Securities Exchange Act of […]

  • Annual Percentage Rate

    Annual Percentage Rate (apr) in relation to Home Equity Lines of CreditIn this context, a definition of Annual Percentage Rate (apr) is provided: The cost of credit, expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, […]

  • Resistance

    Concept of Resistance in Futures TradingIn this context of financial law, the following is a definition of Resistance: In technical analysis, a price area where new selling will emerge to dampen a continued rise. See Support.

  • Binary Option

    Concept of Binary Option in Futures TradingIn this context of financial law, the following is a definition of Binary Option: Futures delivery months other than the spot or front month (also called deferred months ).

  • Futures Contract

    Concept of Futures Contract in Futures TradingIn this context of financial law, the following is a definition of Futures Contract: An agreement to purchase or sell a commodity for delivery in the future: (a) at a price that is determined at initiation of the contract; (b) that obligates each […]

  • Security-Based Swap Execution Facility

    Concept of Security-Based Swap Execution Facility in Futures TradingIn this context of financial law, the following is a definition of Security-Based Swap Execution Facility: A swap execution facility regulated by the SEC where security-based swaps are executed.

  • Ratio Spread

    Concept of Ratio Spread in Futures TradingIn this context of financial law, the following is a definition of Ratio Spread: This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike […]

  • Actuals

    Concept of Actuals in Futures TradingIn this context of financial law, the following is a definition of Actuals: The physical or cash commodity, as distinguished from a futures contract. See Cash and Spot Commodity.