Category: A
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Associated Person
Concept of Associated Person (AP) in Futures TradingIn this context of financial law, the following is a definition of Associated Person (AP): An individual who solicits or accepts (other than in a clerical capacity) orders, discretionary accounts, or participation in a commodity pool, or […]
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Abandonment
Concept of Abandonment in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process by which a counterparty will allow an option to expire or lapse unexercised.ResourcesSee AlsoDerivatives Contract
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Agricultural Commodity
Concept of Agricultural Commodity in Futures TradingIn this context of financial law, the following is a definition of Agricultural Commodity: An agricultural commodity is defined in Commission regulation 1.3(zz) as a commodity in one of four categories: (a) the enumerated commodities listed in […]
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Asian Option
Concept of Asian Option in Futures TradingIn this context of financial law, the following is a definition of Asian Option: An exotic option whose payoff depends on the average price of the underlying asset during some portion of the life of the option.
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Allowances
Concept of Allowances in Futures TradingIn this context of financial law, the following is a definition of Allowances: The discounts (premiums) allowed for grades or locations of a commodity lower (higher) than the par (or basis) grade or location specified in the futures contract. See Differentials.
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Annual Percentage Rate
Annual Percentage Rate (apr) in relation to Home Equity Lines of CreditIn this context, a definition of Annual Percentage Rate (apr) is provided: The cost of credit, expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, […]
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Actuals
Concept of Actuals in Futures TradingIn this context of financial law, the following is a definition of Actuals: The physical or cash commodity, as distinguished from a futures contract. See Cash and Spot Commodity.
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Amortization
Amortization in the Context of Mortgage RefinancingsIn this context, a definition of Amortization may be distilled, worded as follows: The process of fully paying off indebtedness by installments of principal and earned interest over a specific amount of time.
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At-the-Money
Concept of At-the-Money in Futures TradingIn this context of financial law, the following is a definition of At-the-Money: When an option’s strike price is the same as the current trading price of the underlying commodity, the option is at-the-money.
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Aggregation
Concept of Aggregation in Futures TradingIn this context of financial law, the following is a definition of Aggregation: The principle under which all futures positions owned or controlled by one trader (or group of traders acting in concert) are combined to determine reporting status and […]
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Attachment Point
Concept of Attachment Point in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A defined point at which the level of losses in the underlying portfolio reduces the notional of a tranche. For example, the notional in a tranche with an […]
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Abandon
Concept of Abandon in Futures TradingIn this context of financial law, the following is a definition of Abandon: To elect not to exercise or offset a long option position.
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Allocation
Concept of Allocation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process by which a block trade is executed by an asset manager or hedge fund and is then divided (allocated) to individual funds managed by that fund […]
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Ask
Concept of Ask in Futures TradingIn this context of financial law, the following is a definition of Ask: The price level of an offer, as in bid-ask spread.
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Application Fee
Application Fee in the Context of Mortgage RefinancingsIn this context, a definition of Application Fee may be distilled, worded as follows: Fees that are charged when you apply for a loan or other credit. These fees may include charges for property appraisal and a credit report.