Tag: CR
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Credit Event
Concept of Credit Event in Futures TradingIn this context of financial law, the following is a definition of Credit Event: An event such as a debt default or bankruptcy that will affect the payoff on a credit derivative, as defined in the derivative agreement.
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Credit Default Option
Concept of Credit Default Option in Futures TradingIn this context of financial law, the following is a definition of Credit Default Option: A put option that makes a payoff in the event the issuer of a specified reference asset defaults. Also called default option.
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Credit Derivative Transactions
Markit Red (reference Entity Database)Concept of Markit Red (reference Entity Database) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A market standard reference entity database providing critical reference data used to document and […]
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Credit Derivative
Concept of Credit Derivative in Futures TradingIn this context of financial law, the following is a definition of Credit Derivative: A derivative contract designed to assume or shift credit risk, that is, the risk of a credit event such as a default or bankruptcy of a borrower. For example, a […]
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Cross Trading
Concept of Cross Trading in Futures TradingIn this context of financial law, the following is a definition of Cross Trading: Offsetting or noncompetitive match of the buy order of one customer against the sell order of another, a practice that is permissible only when executed in accordance […]
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Credit Index
Credit Index (cdx)Concept of Credit Index (cdx) in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A family of credit derivative (i.e. an instrument that transfers risk from one party to the other) indices, where the underlying reference […]
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Credit Limits
Definition of Credit LimitsThis is the meaning of Credit Limits published by Marco Terry: The financial limit that the factor places on each of your customers. This is often based on their credit rating and possible concentration issues.
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Cross-Margining
Concept of Cross-Margining in Futures TradingIn this context of financial law, the following is a definition of Cross-Margining: A procedure for margining related securities, options, and futures contracts jointly when different clearing organizations clear each side of the position.
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Credit Default Swap
Concept of Credit Default Swap in Futures TradingIn this context of financial law, the following is a definition of Credit Default Swap: A bilateral over-the-counter (OTC) contract in which the seller agrees to make a payment to the buyer in the event of a specified credit event in exchange for […]
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Cross-Hedge
Concept of Cross-Hedge in Futures TradingIn this context of financial law, the following is a definition of Cross-Hedge: Hedging a cash market position in a futures or option contract for a different but price-related commodity.
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Credit Spread
Concept of Credit Spread in Futures TradingIn this context of financial law, the following is a definition of Credit Spread: The difference between the yield on the debt securities of a particular corporate or sovereign borrower (or a class of borrowers with a specified credit rating) and the […]
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Cross Currency Interest Rate Swap
Cross Currency interest rate swapConcept of Cross Currency interest rate swap in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): An interest rate swap (i.e. an agreement to exchange interest rate cash flows) where the interest payments are in […]
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Credit Protection
Definition of Credit ProtectionThis is the meaning of Credit Protection published by Marco Terry: A facility that covers the client against the potential loss due to the non payment of an invoice. Often, this protection is provided by a credit insurance policy.
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Crack Spread
Concept of Crack Spread in Futures TradingIn this context of financial law, the following are some alternative definitions of Crack Spread: (a) In energy futures, the simultaneous purchase of crude oil futures and the sale of petroleum product futures to establish a refining margin. One can […]
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Cross Rate
Concept of Cross Rate in Futures TradingIn this context of financial law, the following is a definition of Cross Rate: In foreign exchange, the price of one currency in terms of another currency in the market of a third country. For example, the exchange rate between Japanese yen and Euros […]