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. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
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