Category: B
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Bucketing
Concept of Bucketing in Futures TradingIn this context of financial law, the following is a definition of Bucketing: Directly or indirectly taking the opposite side of a customer’s order into a broker’s own account or into an account in which a broker has an interest, without open and […]
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Barrier Option
Concept of Barrier Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An option (i.e. the right to buy or sell a financial instrument at some agreed conditions) which can be exercised (1) if the price of the underlying instrument has […]
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Butterfly Spread
Concept of Butterfly Spread in Futures TradingIn this context of financial law, the following is a definition of Butterfly Spread: A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options […]
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Backload
Concept of Backload in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process of inputting trades into the DTCC Trade Information Warehouse. The process includes agreeing the full economics and legal documents between two counterparties […]
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Binary Option
Concept of Binary Option in Futures TradingIn this context of financial law, the following is a definition of Binary Option: Futures delivery months other than the spot or front month (also called deferred months ).
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Bona Fide Hedging Transactions
Concept of Bona Fide Hedging Transactions in Futures TradingIn this context of financial law, the following is a definition of Bona Fide Hedging Transactions: Transactions on a designated contract market or swap execution facility that serve as a substitute for transactions in physical […]
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Basis Grade
Concept of Basis Grade in Futures TradingIn this context of financial law, the following is a definition of Basis Grade: The grade of a commodity used as the standard or par grade of a futures contract.
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Buyer
Concept of Buyer in Futures TradingIn this context of financial law, the following is a definition of Buyer: A market participant who takes a long futures position or buys an option. An option buyer is also called a taker, holder, or owner.
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Bronze Records
Concept of Bronze Records in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The DTCC eligible trades which have been matched but cannot be legally confirmed in Deriv/SERV.ResourcesSee AlsoDerivatives Contract
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Break
Concept of Break in Futures TradingIn this context of financial law, the following is a definition of Break: A rapid and sharp price decline.
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Back Pricing
Concept of Back pricing in Futures TradingIn this context of financial law, the following is a definition of Back pricing: Fixing the price of a commodity for which the commitment to purchase has been made in advance. The buyer can fix the price relative to any monthly or periodic delivery […]
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Beta
Concept of Beta (Beta Coefficient) in Futures TradingIn this context of financial law, the following is a definition of Beta (Beta Coefficient): A measure of the variability of rate of return or value of a stock or portfolio compared to that of the overall market, typically used as a measure of […]
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Bond
Bond BasisConcept of Bond Basis in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest calculation using 30 days in each month and 360 days in each year. Many eurobonds use this as the basis on which interest is calculated. A bond […]
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Back Spread
Concept of Back Spread in Futures TradingIn this context of financial law, the following is a definition of Back Spread: A delta-neutral ratio spread in which more options are bought than sold. A back spread will be profitable if volatility increases. See Delta.
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Boiler Room
Concept of Boiler Room in Futures TradingIn this context of financial law, the following is a definition of Boiler Room: An enterprise that often is operated out of inexpensive, low-rent quarters (hence the term ‘boiler room’), that uses high pressure sales tactics (generally over the […]