Finance

Month: September 2016

  • Portfolio Reconciliation

    Concept of Portfolio Reconciliation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A process of mutual trade recognition which occurs in an event of a collateral dispute over the mark to market value of the collateralised portfolio. The […]

  • Volcker Rule

    Concept of Volcker Rule in Futures TradingIn this context of financial law, the following is a definition of Volcker Rule: Named for former United States Federal Reserve Chairman Paul Volcker, the Volcker Rule is a section of the Dodd-Frank Act that generally prohibits banking entities from […]

  • C & F

    Concept of C & F in Futures TradingIn this context of financial law, the following is a definition of C & F: Cost and Freight’ paid to a point of destination and included in the price quoted; same as C.A.F.

  • Excluded Commodity

    Concept of Excluded Commodity in Futures TradingIn this context of financial law, the following is a definition of Excluded Commodity: In general, the Commodity Exchange Act defines an excluded commodity as: any financial instrument such as a security, currency, interest rate, debt instrument, […]

  • Strike Price

    Concept of Strike Price (Exercise Price) in Futures TradingIn this context of financial law, the following is a definition of Strike Price (Exercise Price): The price, specified in the option contract, at which the underlying futures contract, security, or commodity will move from seller to buyer.

  • Valuation

    Valuation TimeConcept of Valuation Time in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The time at which the collateral portfolio and collateral balance is valued for the purposes of a collateral call.ResourcesSee AlsoDerivatives Contract

  • Basis Point

    Concept of Basis Point in Futures TradingIn this context of financial law, the following is a definition of Basis Point: The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.

  • Redemption

    Target Redemption Note (tarn)Concept of Target Redemption Note (tarn) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A note which is redeemed immediately at par when the aggregate coupons paid under the note reach a specified […]

  • Vanilla

    Vanilla (flow/market Standard)Concept of Vanilla (flow/market Standard) 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) transaction which has a very basic […]

  • Succession Event

    Concept of Succession Event in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): In credit derivative (i.e. an instrument that transfers risk from one party to the other) documentation, an event such as a merger or spinoff that leads to one […]

  • IB

    ResourcesSee AlsoIntroducing Broker Futures Trading Consumer Protection Consumer Finance

  • Banging the Close

    ResourcesSee AlsoMarking the Close Futures Trading Consumer Protection Consumer Finance

  • Put Option

    Concept of Put 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) that gives the buyer the right, but not the obligation, to sell a specified […]

  • Prepayment Penalty

    Prepayment Penalty in the Context of Mortgage RefinancingsIn this context, a definition of Prepayment Penalty may be distilled, worded as follows: Extra fees that may be due if you pay off your loan early by refinancing the loan or by selling the home. The penalty is usually limited to the […]

  • Good Faith Estimate

    Good Faith Estimate in the Context of Mortgage RefinancingsIn this context, a definition of Good Faith Estimate may be distilled, worded as follows: An estimated breakdown of the costs of a mortgage loan. The Real Estate Settlement Procedures Act (RESPA) requires your mortgage lender to give […]