Month: December 2016
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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.
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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.
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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 […]
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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.
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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.
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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.
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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).
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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 […]
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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 […]
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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.
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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 […]
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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
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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
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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 […]
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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 […]