Month: October 2016
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Delivery Instrument
Concept of Delivery Instrument in Futures TradingIn this context of financial law, the following is a definition of Delivery Instrument: A document used to effect delivery on a futures contract, such as a warehouse receipt or shipping certificate.
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Pit
Concept of Pit in Futures TradingIn this context of financial law, the following is a definition of Pit: A specially constructed area on the trading floor of some exchanges where trading in a futures contract or option is conducted. On certain other exchanges, the term ring designates the […]
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Reaction
Concept of Reaction in Futures TradingIn this context of financial law, the following is a definition of Reaction: A downward price movement after a price advance.
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T-Bond
ResourcesSee AlsoTreasury Bond Futures Trading Consumer Protection Consumer Finance
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Fixing
Fix, FixingResourcesSee AlsoGold Fixing Futures Trading Consumer Protection Consumer Finance
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Trade Information Warehouse
Trade Information Warehouse (tiw)Concept of Trade Information Warehouse (tiw) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The centralised and secure global infrastructure for OTC (over the counter) derivatives, currently covering credit […]
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Indices
Itraxx IndicesConcept of Itraxx Indices in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A family of credit derivative (i.e. an instrument that transfers risk from one party to the other) indices, where the underlying reference entities are […]
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Factoring Fee
Definition of Factoring FeeThis is the meaning of Factoring Fee published by Marco Terry: The fee that the factoring company charges to finance your invoices. The fee is often a discount on the gross value of the invoice and is expressed as a percentage that increases over time (e.g. 1.5% per […]
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Haircut
Concept of Haircut in Futures TradingIn this context of financial law, the following is a definition of Haircut: In computing the value of assets for purposes of capital, segregation, or margin requirements, a percentage reduction from the stated value (e.g., book value or market value) to […]
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Moratorium
Repudiation/moratoriumConcept of Repudiation/moratorium in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event applicable only to Sovereign reference entities whereby the relevant Sovereign refuses to acknowledge or honour its […]
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Backwardation
Concept of Backwardation in Futures TradingIn this context of financial law, the following is a definition of Backwardation: Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and […]
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Ted Spread
Concept of Ted Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Ted Spread: (a) The difference between the interest rate on three-month U.S. Treasury bills and three-month LIBOR; (b) traditionally, the difference between the price of […]
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Vertical Spread
Concept of Vertical Spread in Futures TradingIn this context of financial law, the following is a definition of Vertical Spread: Any of several types of option spread involving the simultaneous purchase and sale of options of the same class and expiration date but different strike prices, […]
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Trend
Concept of Trend in Futures TradingIn this context of financial law, the following is a definition of Trend: The general direction, either upward or downward, in which prices have been moving.
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Hedge Ratio
Concept of Hedge Ratio in Futures TradingIn this context of financial law, the following is a definition of Hedge Ratio: Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.