Work-Up

This Issue in United States

Concept of Work-Up in Futures Trading

In this context of financial law, the following is a definition of Work-Up: A procedure common in derivatives markets that allows negotiated transactions to expand. In a work-up, after a price and quantity for a bilateral deal have been set, the parties involved can offer to expand the quantity of the deal, until the other party objects. In the case of brokered deals, third parties can similarly offer (through the broker) to expand the size of the trade until the appetite on one side of the trade has been exhausted.