Category: P
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Public Elevators
Concept of Public Elevators in Futures TradingIn this context of financial law, the following is a definition of Public Elevators: Grain elevators in which bulk storage of grain is provided to the public for a fee. Grain of the same grade but owned by different persons is usually mixed or […]
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Prearranged Trading
Concept of Prearranged Trading in Futures TradingIn this context of financial law, the following is a definition of Prearranged Trading: Trading between brokers in accordance with an expressed or implied agreement or understanding, which is a violation of the Commodity Exchange Act and CFTC […]
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Price
Black-scholes ModelConcept of Black-scholes Model in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A complex mathematical model used to determine the price of European put or call options.ResourcesSee AlsoDerivatives Contract
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Premium
Concept of Premium in Futures TradingIn this context of financial law, the following are some alternative definitions of Premium: (a) The payment an option buyer makes to the option writer for granting an option contract; (b) the amount a price would be increased to purchase a better quality […]
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Position Trader
Concept of Position Trader in Futures TradingIn this context of financial law, the following is a definition of Position Trader: A commodity trader who either buys or sells contracts and holds them for an extended period of time, as distinguished from a day trader, who will normally initiate […]
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Public
Concept of Public in Futures TradingIn this context of financial law, the following is a definition of Public: In trade parlance, non-professional speculators as distinguished from hedgers and professional speculators or traders.
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Pyramiding
Concept of Pyramiding in Futures TradingIn this context of financial law, the following is a definition of Pyramiding: The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.
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Ponzi Scheme
Concept of Ponzi Scheme in Futures TradingIn this context of financial law, the following is a definition of Ponzi Scheme: Named after Charles Ponzi, a man with a remarkable criminal career in the early 20th century, the term has been used to describe pyramid arrangements whereby an enterprise […]
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Physical
Concept of Physical in Futures TradingIn this context of financial law, the following is a definition of Physical: A contract or derivative that provides for the physical delivery of a commodity rather than cash settlement. See Financial.
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Principal
Principal in the Context of Mortgage RefinancingsIn this context, a definition of Principal may be distilled, worded as follows: The amount of money borrowed or the amount still owed on a loan.
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Pre-Trade Transparency
Concept of Pre-Trade Transparency in Futures TradingIn this context of financial law, the following is a definition of Pre-Trade Transparency: Describes markets where basic data on proposed transactions (such as the prices and quantities of the best bid and offer) are generally available to […]
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Prop Shop
Concept of Prop Shop in Futures TradingIn this context of financial law, the following is a definition of Prop Shop: A proprietary trading group, especially one where the group’s traders trade electronically at a physical facility operated by the group.
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Prompt Date
Concept of Prompt Date in Futures TradingIn this context of financial law, the following is a definition of Prompt Date: The date on which the buyer of an option will buy or sell the underlying commodity (or futures contract) if the option is exercised.
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Program Trading
Concept of Program Trading in Futures TradingIn this context of financial law, the following is a definition of Program Trading: The purchase (or sale) of a large number of stocks contained in or comprising a portfolio. Originally called program trading when index funds and other institutional […]
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Post-Trade Transparency
Concept of Post-Trade Transparency in Futures TradingIn this context of financial law, the following is a definition of Post-Trade Transparency: Describes markets where basic data on recent transactions (such as the price and terms of the transactions) is promptly and routinely reported to the […]