Category: A

  • 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 […]

  • 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

  • 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 […]

  • 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.

  • 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.

  • 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, […]

  • 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.

  • 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.

  • 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.

  • 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 […]

  • 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 […]

  • 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.

  • 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 […]

  • 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.

  • 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.