Category: F
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Front Spread
Concept of Front Spread in Futures TradingIn this context of financial law, the following is a definition of Front Spread: A delta-neutral ratio spread in which more options are sold than bought. Also called ratio vertical spread. A front spread will increase in value if volatility decreases.
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Futures Price Valuation
Concept of Futures Price Valuation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A method of valuation for equity index derivatives, the settlement price being sourced from the exercise price of a listed contract on the index rather than […]
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Forex
Concept of Forex in Futures TradingIn this context of financial law, the following is a definition of Forex: Refers to the over-the-counter market for foreign exchange transactions. Also called the foreign exchange market.
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Feed Ratio
Concept of Feed Ratio in Futures TradingIn this context of financial law, the following is a definition of Feed Ratio: The relationship of the cost of feed, expressed as a ratio to the sale price of animals, such as the corn-hog ratio. These serve as indicators of the profit margin or lack of […]
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Financing Cost
Carry (net Financing Cost)Concept of Carry (net Financing Cost) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the cost of financing the purchase of an asset and the cash yield of the asset. Positive carry means that […]
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Fixing
Fix, FixingResourcesSee AlsoGold Fixing Futures Trading Consumer Protection Consumer Finance
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Factoring Fee
Definition of Factoring FeeThis is the meaning of Factoring Fee published by Marco Terry: The fee that the factoring company charges to finance your invoices. The fee is often a discount on the gross value of the invoice and is expressed as a percentage that increases over time (e.g. 1.5% per […]
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Futures Option
Concept of Futures Option in Futures TradingIn this context of financial law, the following is a definition of Futures Option: An option on a futures contract.
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Failure to Pay
Concept of Failure to Pay in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A credit event that is triggered if the reference entity fails to make interest or principal payments due under the terms of a reference obligation after a permitted […]
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Factoring
Definition of FactoringThis is the meaning of Factoring published by Marco Terry: A form of business funding where a company finances their accounts receivable by selling their invoices to an intermediary called a factoring company.
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Front Month
Concept of Front Month in Futures TradingIn this context of financial law, the following is a definition of Front Month: The spot or nearby delivery month, the nearest traded contract month. See Back Month.
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Forward Contract
Concept of Forward Contract in Futures TradingIn this context of financial law, the following is a definition of Forward Contract: A cash transaction common in many industries, including commodity merchandising, in which a commercial buyer and seller agree upon delivery of a specified quality […]
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Futures-equivalent
Concept of Futures-equivalent in Futures TradingIn this context of financial law, the following is a definition of Futures-equivalent: A term frequently used with reference to speculative position limits for options on futures contracts. The futures-equivalent of an option position is the […]
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Federal Energy Regulatory Commission
Concept of Federal Energy Regulatory Commission in Futures TradingIn this context of financial law, the following is a definition of Federal Energy Regulatory Commission: (FERC): An independent agency of the U.S. Government that regulates the interstate transmission of natural gas, oil, and […]
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Forward Market
Concept of Forward Market in Futures TradingIn this context of financial law, the following is a definition of Forward Market: The over-the-counter market for forward contracts.