Finance

Tag: BA

  • Bad Debt

    Definition of Bad DebtThis is the meaning of Bad Debt published by Marco Terry: Bad debt is debt that has a minimal or limited chance of being collected. Bad debt is often written off or sold to a collections agency.

  • Basis Risk

    Concept of Basis Risk in Futures TradingIn this context of financial law, the following is a definition of Basis Risk: The risk associated with an unexpected widening or narrowing of the basis between the time a hedge position is established and the time that it is lifted.

  • Back Months

    Concept of Back Months in Futures TradingIn this context of financial law, the following is a definition of Back Months: Futures delivery months other than the spot or front month (also called deferred months ).

  • Backwardation

    Concept of Backwardation in Futures TradingIn this context of financial law, the following is a definition of Backwardation: Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for January is $360.00 per ounce and […]

  • Basis Point

    Concept of Basis Point in Futures TradingIn this context of financial law, the following is a definition of Basis Point: The measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.

  • Banging the Close

    ResourcesSee AlsoMarking the Close Futures Trading Consumer Protection Consumer Finance

  • Basis

    Concept of Basis in Futures TradingIn this context of financial law, the following is a definition of Basis: The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity (typically calculated as cash minus […]

  • Basket

    Basket OptionConcept of Basket 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) on the weighted average of several underlying […]

  • 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 […]

  • 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 […]

  • 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.

  • 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 […]

  • 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.

  • Back Office

    Concept of Back Office in Futures TradingIn this context of financial law, the following is a definition of Back Office: The department in a financial institution that processes and deals and handles delivery, settlement, and regulatory procedures.

  • Basis Quote

    Concept of Basis Quote in Futures TradingIn this context of financial law, the following is a definition of Basis Quote: Offer or sale of a cash commodity in terms of the difference above or below a futures price (e.g., 10 cents over December corn).