Month: November 2016
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Leaps
Concept of Leaps in Futures TradingIn this context of financial law, the following is a definition of Leaps: Long-dated, exchange-traded options. Stands for ‘Long-term Equity Anticipation Securities.’
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Momentum
Concept of Momentum in Futures TradingIn this context of financial law, the following is a definition of Momentum: In technical analysis, the relative change in price over a specific time interval. Often equated with speed or velocity and considered in terms of relative strength.
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Short Selling
Concept of Short Selling in Futures TradingIn this context of financial law, the following is a definition of Short Selling: Selling a futures contract or other instrument with the idea of delivering on it or offsetting it at a later date.
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Consignment
Concept of Consignment in Futures TradingIn this context of financial law, the following is a definition of Consignment: A shipment made by a producer or dealer to an agent elsewhere with the understanding that the commodities in question will be cared for or sold at the highest obtainable […]
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Accrued Interest
Concept of Accrued Interest in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The interest which is accumulated on a security, either from the date of issue or the previous coupon payment, to the present. The accrued interest will be paid at […]
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Writer
Concept of Writer in Futures TradingIn this context of financial law, the following is a definition of Writer: The issuer, grantor, or seller of an option contract.
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Box Spread
Concept of Box Spread in Futures TradingIn this context of financial law, the following is a definition of Box Spread: An option position in which the owner establishes a long call and a short put at one strike price and a short call and a long put at another strike price, all of which are…
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Implied Repo Rate
Concept of Implied Repo Rate in Futures TradingIn this context of financial law, the following is a definition of Implied Repo Rate: The rate of return that can be obtained from selling a debt instrument futures contract and simultaneously buying a bond or note deliverable against that futures […]
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Manufacturer
Concept of Manufacturer (AM) in Futures TradingIn this context of financial law, the following is a definition of Manufacturer (AM): A large trader that declares itself a “Manufacturer” on CFTC Form 40, which provides as examples “refiner, miller, crusher, fabricator, sawmill, […]
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Interaffiliate Trades
Concept of Interaffiliate Trades in Futures TradingIn this context of financial law, the following is a definition of Interaffiliate Trades: Trades made between counterparties that share the same majority-ownership.
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Differentials
Concept of Differentials in Futures TradingIn this context of financial law, the following is a definition of Differentials: The discount (premium) allowed for grades or locations of a commodity lower (higher) than the par of basis grade or location specified in the futures contact. See Allowances.
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Default Option
ResourcesSee AlsoCredit Default Option Futures Trading Consumer Protection Consumer Finance
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Out Trade
Concept of Out Trade in Futures TradingIn this context of financial law, the following is a definition of Out Trade: A trade that cannot be cleared by a clearing organization because the trade data submitted by the two clearing members or two traders involved in the trade differs in some […]
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Economically Deliverable Supply
Concept of Economically Deliverable Supply in Futures TradingIn this context of financial law, the following is a definition of Economically Deliverable Supply: That portion of the deliverable supply of a commodity that is in position for delivery against a futures contract, and is not […]
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Hybrid Basket
Concept of Hybrid Basket in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A basket containing both stocks and indices or underlyings from a combination of asset classes (such as a foreign exchange rate or a commodity).ResourcesSee […]