Futures (Commodities & Derivatives) Terms

  1. Absolute Return

  2. AC-DC Option

  3. Accreting Principal Swap

  4. Accrual Swap

  5. Accumulation/Distribution

  6. Accumulative Swing Index - ASI

  7. Actuals

  8. Advance Commitment

  9. Against Actual

  10. Aggregation

  11. Aggressor

  12. Airbag Swap

  13. Allowances

  14. Alpha Generator

  15. Alternative Investment

  16. Anticipatory Hedge

  17. Approved Delivery Facility

  18. Arbitrage Trading Program - ATP

  19. Arbitrage-Free Valuation

  20. Arrears Swap

  21. Asian Tail

  22. Assay

  23. Asset Backed Credit Default Swap - ABCDS

  24. Asset Swap

  25. Assign

  26. Assignable Contract

  27. Associated Person

  28. Association Of Futures Brokers And Dealers - AFBD

  29. At The Market

  30. Australian Future Fund

  31. Authorized Forex Dealer

  32. Autotrading

  33. Back Month Contract

  34. Back Months

  35. Backpricing

  36. Backwardation

  37. Bad Debt Reserve

  38. Baltic Exchange

  39. Barings Bank

  40. Barone-Adesi And Whaley Model

  41. Barrels Per Day - B/D

  42. Base Metals

  43. Basis

  44. Basis Differential

  45. Basis Grade

  46. Basis Quote

  47. Basis Risk

  48. BAX Contract

  49. Bear Spread

  50. Bilateral Netting

  51. Billions Of Cubic Feet Equivalent - BCFE

  52. Biodiesel

  53. Biofuel

  54. Black's Model

  55. Blackboard Trading

  56. Blue Month

  57. Board Broker

  58. Board Broker System

  59. BOBL Futures Contract

  60. Bombay Stock Exchange (BSE) .BO

  61. Bond Buyer Index

  62. Bond Futures

  63. Bond Market Association (BMA) Swap

  64. Booking the Basis

  65. Box Size

  66. Break

  67. Brent Blend

  68. Broken Date

  69. Bucket

  70. BUGS Index - HUI

  71. Bulge

  72. Bull Put Spread

  73. Bullion Market

  74. Buoyant

  75. Buyer's Call

  76. Buying Hedge

  77. Calendar Spread

  78. Call On A Call

  79. Call Option

  80. Call Rule

  81. Canadian Derivatives Clearing Corporation - CDCC

  82. Canadian Investor Protection Fund - CIPF

  83. Cantor Futures Exchange

  84. Capped Option

  85. Capping

  86. Carrying Broker

  87. Carrying Charge

  88. Carrying Charge Market

  89. Cash and Carry Transaction

  90. Cash Commodity

  91. Cash Contract

  92. Cash Delivery

  93. Cash Market

  94. Cash Price

  95. Cash Settlement

  96. Cash-And-Carry Trade

  97. Cash-And-Carry-Arbitrage

  98. Cat Spread

  99. Catastrophe Futures

  100. Catastrophe Swap

Hot Definitions
  1. Market Capitalization

    The total dollar market value of all of a company's outstanding shares. Market capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to sales or total asset figures.
  2. Oil Reserves

    An estimate of the amount of crude oil located in a particular economic region. Oil reserves must have the potential of being extracted under current technological constraints. For example, if oil pools are located at unattainable depths, they would not be considered part of the nation's reserves.
  3. Joint Venture - JV

    A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it.
  4. Aggregate Risk

    The exposure of a bank, financial institution, or any type of major investor to foreign exchange contracts - both spot and forward - from a single counterparty or client. Aggregate risk in forex may also be defined as the total exposure of an entity to changes or fluctuations in currency rates.
  5. Organic Growth

    The growth rate that a company can achieve by increasing output and enhancing sales. This excludes any profits or growth acquired from takeovers, acquisitions or mergers. Takeovers, acquisitions and mergers do not bring about profits generated within the company, and are therefore not considered organic.
  6. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
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