Finance

Category: P

  • Platforms

    Novation 2.0Concept of Novation 2.0 in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The platform that allows on-line ad hoc enquiry and automated reconciliation of a novated trade between a prime broker and the Trade Information Warehouse. […]

  • Position Accountability

    Concept of Position Accountability in Futures TradingIn this context of financial law, the following is a definition of Position Accountability: A rule adopted by an exchange in lieu of position limits requiring persons holding a certain number of outstanding contracts to report the nature of […]

  • Pit

    Concept of Pit in Futures TradingIn this context of financial law, the following is a definition of Pit: A specially constructed area on the trading floor of some exchanges where trading in a futures contract or option is conducted. On certain other exchanges, the term ring designates the […]

  • Payment Cap

    Payment Cap in the Context of Mortgage RefinancingsIn this context, a definition of Payment Cap may be distilled, worded as follows: A limit on the amount that your monthly mortgage payment on a loan may change, usually a percentage of the loan. The limit can be applied each time the payment […]

  • Path Dependent

    Concept of Path Dependent in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): When the payout of a swap is determined by the path taken (rise or fall) of the underlying rate.ResourcesSee AlsoDerivatives Contract

  • Physical Commodity

    Concept of Physical Commodity in Futures TradingIn this context of financial law, the following is a definition of Physical Commodity: A tangible commodity rather than a financial commodity, typically an agricultural commodity, energy commodity or a metal.

  • Portfolio Reconciliation

    Concept of Portfolio Reconciliation in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A process of mutual trade recognition which occurs in an event of a collateral dispute over the mark to market value of the collateralised portfolio. The […]

  • Put Option

    Concept of Put 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) that gives the buyer the right, but not the obligation, to sell a specified […]

  • Prepayment Penalty

    Prepayment Penalty in the Context of Mortgage RefinancingsIn this context, a definition of Prepayment Penalty may be distilled, worded as follows: Extra fees that may be due if you pay off your loan early by refinancing the loan or by selling the home. The penalty is usually limited to the […]

  • Pegging

    Concept of Pegging in Futures TradingIn this context of financial law, the following is a definition of Pegging: Effecting transactions in an instrument underlying an option to prevent a decline in the price of the instrument shortly prior to the option’s expiration date so that previously […]

  • Par

    Concept of Par in Futures TradingIn this context of financial law, the following are some alternative definitions of Par: (a) Refers to the standard delivery point(s) and/or quality of a commodity that is deliverable on a futures contract at contract price. Serves as a benchmark upon which to […]

  • Price Discovery

    Concept of Price Discovery in Futures TradingIn this context of financial law, the following is a definition of Price Discovery: The process of determining the price level for a commodity through the interaction of buyers and sellers and based on supply and demand conditions.

  • Protection Seller

    Concept of Protection Seller in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The credit default swap counterparty that takes on credit risk of a reference entity in return for appropriate compensation.ResourcesSee AlsoDerivatives Contract

  • Purchase and Sale Statement

    Concept of P&S (Purchase and Sale Statement) in Futures TradingIn this context of financial law, the following is a definition of P&S (Purchase and Sale Statement): A statement sent by a futures commission merchant to a customer when any part of a futures position is offset, showing the number […]

  • Physical Delivery

    Concept of Physical Delivery in Futures TradingIn this context of financial law, the following is a definition of Physical Delivery: A provision in a futures contract or other derivative for delivery of the actual commodity to satisfy the contract. In the context of a financial derivative, that […]