Month: January 2017
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Preceding Business Day Convention
Concept of Preceding Business Day Convention in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A type of business day convention where payment days that fall on a bad business day roll backwards to the preceding good business day.ResourcesSee […]
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Limit
Concept of Limit (Up or Down) in Futures TradingIn this context of financial law, the following is a definition of Limit (Up or Down): The maximum price advance or decline from the previous day’s settlement price permitted during one trading session, as fixed by the rules of an exchange. In […]
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Calypso
Concept of Calypso in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A single integrated platform that supports trading, risk management and processing (real-time monitoring) for credit, interest rate, equity, commodity and foreign exchange […]
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Request for Quote
Concept of Request for Quote in Futures TradingIn this context of financial law, the following is a definition of Request for Quote: A trading system or platform whereby market participants transmit a request for buy or sell prices for a specific instrument and transaction size to other market […]
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Call
Concept of Call in Futures TradingIn this context of financial law, the following are some alternative definitions of Call: (a) An option contract that gives the buyer the right but not the obligation to purchase a commodity or other asset or to enter into a long futures position at a specified […]
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Forwardation
ResourcesSee AlsoContango Futures Trading Consumer Protection Consumer Finance
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Proprietary Account
Concept of Proprietary Account in Futures TradingIn this context of financial law, the following is a definition of Proprietary Account: An account that a futures commission merchant (FCM) carries for itself or a closely related person, such as a parent, subsidiary or affiliate company, general […]
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Trading Facility
Concept of Trading Facility in Futures TradingIn this context of financial law, the following is a definition of Trading Facility: In general, a person or group of persons that provides a physical or electronic facility or system in which multiple participants have the ability to execute or […]
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Terminal Market
Concept of Terminal Market in Futures TradingIn this context of financial law, the following is a definition of Terminal Market: Usually synonymous with commodity exchange or futures market, specifically in the United Kingdom.
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Eurodollars
Concept of Eurodollars in Futures TradingIn this context of financial law, the following is a definition of Eurodollars: U.S. dollar deposits placed with banks outside the U.S. Holders may include individuals, companies, banks, and central banks.
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Strip
Concept of Strip in Futures TradingIn this context of financial law, the following is a definition of Strip: A sequence of futures contract months (e.g., the June, July, and August natural gas futures contracts) that can be executed as a single transaction.
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Work-Up
Concept of Work-Up in Futures TradingIn this context of financial law, the following is a definition of Work-Up: A procedure common in derivatives markets that allows negotiated transactions to expand. In a work-up, after a price and quantity for a bilateral deal have been set, the parties […]
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Force Majeure
Concept of Force Majeure in Futures TradingIn this context of financial law, the following is a definition of Force Majeure: A clause in a supply contract that permits either party not to fulfill the contractual commitments due to events beyond their control. These events may range from strikes […]
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CCC
ResourcesSee AlsoCommodity Credit Corporation Futures Trading Consumer Protection Consumer Finance
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Speculator
Concept of Speculator in Futures TradingIn this context of financial law, the following is a definition of Speculator: In commodity futures, a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.