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. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific benchmark, such as a SPDR. Unlike actively managed ETFs, passive ETFs are not managed by a fund manager on a daily basis.
  2. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another market so that it balances out. So when examining a specific market, if all other markets are in equilibrium, Walras' Law asserts that the examined market is also in equilibrium.
  3. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will respond similarly to a marketing action. Market segmentation enables companies to target different categories of consumers who perceive the full value of certain products and services differently from one another.
  4. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  6. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
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