Finance

Month: December 2016

  • Accumulator

    Concept of Accumulator in Futures TradingIn this context of financial law, the following is a definition of Accumulator: A contract in which the seller agrees to deliver a specified quantity of a commodity or other asset to the buyer at a pre-determined price on a series of specified […]

  • Cost of Tender

    Concept of Cost of Tender in Futures TradingIn this context of financial law, the following is a definition of Cost of Tender: Total of various charges incurred when a commodity is certified and delivered on a futures contract.

  • European Option

    Concept of European Option in Futures TradingIn this context of financial law, the following is a definition of European Option: An option that may be exercised only on the expiration date. See American Option.

  • Commercial Grain Stocks

    Concept of Commercial Grain Stocks in Futures TradingIn this context of financial law, the following is a definition of Commercial Grain Stocks: Domestic grain in store in public and private elevators at important markets and grain afloat in vessels or barges in lake and seaboard ports.

  • Credit Derivative

    Concept of Credit Derivative in Futures TradingIn this context of financial law, the following is a definition of Credit Derivative: A derivative contract designed to assume or shift credit risk, that is, the risk of a credit event such as a default or bankruptcy of a borrower. For example, a […]

  • Shipping Certificate

    Concept of Shipping Certificate in Futures TradingIn this context of financial law, the following is a definition of Shipping Certificate: A negotiable instrument used as the futures delivery instrument for certain physical commodities. The shipping certificate is issued by exchange-approved […]

  • Point Balance

    Concept of Point Balance in Futures TradingIn this context of financial law, the following is a definition of Point Balance: A statement prepared by futures commission merchants to show profit or loss on all open contracts using an official closing or settlement price, usually at calendar month end.

  • Exchange of Futures for Swaps

    Concept of Exchange of Futures for Swaps (EFS) in Futures TradingIn this context of financial law, the following is a definition of Exchange of Futures for Swaps (EFS): A privately negotiated transaction in which a position in a futures contract is exchanged for a swap position in the same or a […]

  • Cascade

    Concept of Cascade in Futures TradingIn this context of financial law, the following is a definition of Cascade: A situation in which the execution of market orders or stop loss orders on an electronic trading system triggers other stop loss orders which may, in turn, trigger still more stop […]

  • GTW

    ResourcesSee AlsoGood This Week Order Futures Trading Consumer Protection Consumer Finance

  • Deliverable Supply

    Concept of Deliverable Supply in Futures TradingIn this context of financial law, the following is a definition of Deliverable Supply: The total supply of a commodity that meets the delivery specifications of a futures contract. See Economically Deliverable Supply.

  • Eligible Contract Participant

    Concept of Eligible Contract Participant in Futures TradingIn this context of financial law, the following is a definition of Eligible Contract Participant: An entity, such as a financial institution, an insurance company, or commodity pool, that is classified by the Commodity Exchange Act as […]

  • Foreign Board of Trade

    Concept of Foreign Board of Trade in Futures TradingIn this context of financial law, the following is a definition of Foreign Board of Trade: A futures exchange based outside the United States. Foreign boards of trade that wish to offer direct access in the U.S. must register with the CFTC.

  • Cash Settlement

    Concept of Cash Settlement in Futures TradingIn this context of financial law, the following is a definition of Cash Settlement: A method of settling futures, options and other derivatives whereby the seller (or short) pays the buyer (or long) the cash value of the underlying commodity or a […]

  • Short Hedge

    Concept of Selling Hedge (or Short Hedge) in Futures TradingIn this context of financial law, the following is a definition of Selling Hedge (or Short Hedge): Selling futures contracts to protect against possible decreased prices of commodities. See Hedging.