Finance

Tag: PR

  • Price Banding

    Concept of Price Banding in Futures TradingIn this context of financial law, the following is a definition of Price Banding: A CME Group and ICE-instituted mechanism to ensure a fair and orderly market on an electronic trading platform. This mechanism subjects all incoming orders to price […]

  • Price Differential

    Strike Price DifferentialConcept of Strike Price Differential in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The difference between the settlement price and the strike price at the point of option exercise.ResourcesSee AlsoDerivatives Contract

  • Preceding Business Day Convention

    Concept of Preceding Business Day Convention in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A type of business day convention where payment days that fall on a bad business day roll backwards to the preceding good business day.ResourcesSee […]

  • Proprietary Account

    Concept of Proprietary Account in Futures TradingIn this context of financial law, the following is a definition of Proprietary Account: An account that a futures commission merchant (FCM) carries for itself or a closely related person, such as a parent, subsidiary or affiliate company, general […]

  • Price Basing

    Concept of Price Basing in Futures TradingIn this context of financial law, the following is a definition of Price Basing: A situation where producers, processors, merchants, or consumers of a commodity establish commercial transaction prices based on the futures prices for that or a related […]

  • 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 […]

  • 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

  • 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 […]

  • 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

  • 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 […]

  • 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.

  • 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 […]

  • 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.

  • 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.