Month: December 2016

  • Bespoke Swap

    Concept of Bespoke Swap in Futures TradingIn this context of financial law, the following is a definition of Bespoke Swap: A highly customized swap , usually constructed around the needs of a sophisticated customer with specialized risk exposure.

  • Opening Price

    Concept of Opening Price (or Range) in Futures TradingIn this context of financial law, the following is a definition of Opening Price (or Range): The price (or price range) recorded during the period designated by the exchange as the official opening.

  • Accommodation Trading

    Concept of Accommodation Trading in Futures TradingIn this context of financial law, the following is a definition of Accommodation Trading: Non-competitive trading entered into by a trader, usually to assist another with illegal trades, such as a sale at a below market price intended to create […]

  • Bullion

    Concept of Bullion in Futures TradingIn this context of financial law, the following is a definition of Bullion: Bars or ingots of precious metals, usually cast in standardized sizes.

  • Advance Rate

    Definition of Advance rateThis is the meaning of Advance rate published by Marco Terry: he percentage of the invoice that will be advanced. On average, most factors advance between 70% and 85% of the gross value of the invoice.

  • Controlled Account

    Concept of Controlled Account in Futures TradingIn this context of financial law, the following is a definition of Controlled Account: An account for which trading is directed by someone other than the owner. Also called a Managed Account or a Discretionary Account.

  • Security-Based Swap Dealer

    Concept of Security-Based Swap Dealer in Futures TradingIn this context of financial law, the following is a definition of Security-Based Swap Dealer: A swap dealer that deals in security based swaps under SEC regulation. See 7 USC 1a(43).

  • Equity Index Swap

    Concept of Equity Index Swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An obligation between two parties to exchange cash flows based on the percentage change in one or more stock indices for a specific period with previously agreed […]

  • Money

    In the MoneyConcept of In the Money in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A position which has intrinsic value, for example a portfolio acquired at a rate which is more advantageous than current market rates.ResourcesSee […]

  • Instrument

    Concept of Instrument in Futures TradingIn this context of financial law, the following is a definition of Instrument: A tradable asset such as a commodity, security, or derivative, or an index or value that underlies a derivative or could underlie a derivative.

  • Asset Based Loan

    Definition of Asset Based Loan (ABL)This is the meaning of Asset Based Loan (ABL) published by Marco Terry: It is a short term loan that is secured by the company’s assets such as inventory, real estate, equipment or accounts receivable. Most are paid back when the asset that secures the loan […]

  • Events

    Post Trade Events (pte)Concept of Post Trade Events (pte) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An event that occurs after a trade is confirmed in DTCC Deriv/SERV.ResourcesSee AlsoDerivatives Contract

  • Time Decay

    Concept of Time Decay in Futures TradingIn this context of financial law, the following is a definition of Time Decay: The tendency of an option to decline in value as the expiration date approaches, especially if the price of the underlying instrument is exhibiting low volatility. See Time Value

  • Dealer Poll

    Concept of Dealer Poll in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process of finding a reference price for an asset by obtaining quotes from multiple dealers in that asset. Dealer polls also determine the value of a defaulted bond […]

  • Event Market

    Concept of Event Market in Futures TradingIn this context of financial law, the following is a definition of Event Market: A market in derivatives whose payoff is based on a specified event or occurrence such as the release of a macroeconomic indicator, a corporate earnings announcement, or the […]