Finance

Month: January 2017

  • Confirmation Statement

    Concept of Confirmation Statement in Futures TradingIn this context of financial law, the following is a definition of Confirmation Statement: A statement sent by a futures commission merchant to a customer when a futures or options position has been initiated which typically shows the price […]

  • Concentration

    Definition of ConcentrationThis is the meaning of Concentration published by Marco Terry: The level for which a factor will fund a single customer in your portfolio. This is usually expressed as a percentage. Done as a risk management measure to ensure that a single account does not represent a […]

  • Commodity Index Trader

    Concept of Commodity Index Trader in Futures TradingIn this context of financial law, the following is a definition of Commodity Index Trader: An entity that conducts futures trades on behalf of a commodity index fund or to hedge commodity index swap positions.

  • Margin

    Concept of Margin in Futures TradingIn this context of financial law, the following is a definition of Margin: The amount of money or collateral deposited by a customer with his broker, by a broker with a clearing member, or by a clearing member with a clearing organization. The margin is not […]

  • Cheapest-to-Deliver

    Concept of Cheapest-to-Deliver in Futures TradingIn this context of financial law, the following is a definition of Cheapest-to-Deliver: Usually refers to the selection of a class of bonds or notes deliverable against an expiring bond or note futures contract. The bond or note that has the […]

  • Snowballs

    Concept of Snowballs in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A structured interest rate derivative (i.e. an instrument that transfers risk from one party to the other) transaction where for an initial term the coupon is specified. […]

  • MOB Spread

    Concept of MOB Spread in Futures TradingIn this context of financial law, the following is a definition of MOB Spread: A spread between the municipal bond futures contract and the Treasury bond contract, also known as munis over bonds.

  • Full Carry

    Full Carrying Charge, Full CarryResourcesSee AlsoCarrying Charges Futures Trading Consumer Protection Consumer Finance

  • Ratio

    Concept of Gold/Silver Ratio in Futures TradingIn this context of financial law, the following is a definition of Gold/Silver Ratio: The number of ounces of silver required to buy one ounce of gold at current spot prices.

  • Commitments

    ResourcesSee AlsoOpen Interest Futures Trading Consumer Protection Consumer Finance

  • Bad Debt

    Definition of Bad DebtThis is the meaning of Bad Debt published by Marco Terry: Bad debt is debt that has a minimal or limited chance of being collected. Bad debt is often written off or sold to a collections agency.

  • Forward

    Concept of Forward in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A contract involving the sale by one party and the purchase by another party of a predefined amount of an underlying instrument, at a predefined price and a predefined date […]

  • Underlying Commodity

    Concept of Underlying Commodity in Futures TradingIn this context of financial law, the following is a definition of Underlying Commodity: The cash commodity underlying a futures contract. Also, the commodity or futures contract on which a commodity option is based, and which must be accepted […]

  • Market Microstructure

    Concept of Market Microstructure in Futures TradingIn this context of financial law, the following is a definition of Market Microstructure: Refers to the means by which individual trades take place. An example of a broad class of market microstructures is an order book. Another such class […]

  • Variable Rate

    Variable Rate in relation to Home Equity Lines of CreditIn this context, a definition of Variable Rate is provided: An interest rate that changes periodically in relation to an index, such as the prime rate. Payments may increase or decrease accordingly.