摘要: A good or asset's interchangeability with other individual goods/assets of the same type. Assets possessing this property simplify the exchange/trade process, as interchangeability assumes that every[阅读全文:]
摘要: Mainly pertaining to options and futures, this is the options or futures contract that has the most distant deliverly month or expiration.
This is also known as the "back month".
[阅读全文:]
摘要:
A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Fu[阅读全文:]
摘要: The rate of change for delta with respect to the underlying asset's price.
Mathematically, gamma is the first derivative of delta and is used when trying to gauge the price of an option[阅读全文:]
摘要: An Islamic finance term describing a risky or hazardous sale, where details concerning the sale item are unknown or uncertain. Gharar is generally prohibited under Islam, which explicitly forbids trad[阅读全文:]
摘要: An illegal trading practice used by floor brokers. It is considered to be non-competitive, as it involves the execution of large trades at different prices.
Floor brokers attempt to ginzy trade [阅读全文:]
摘要:
A risk-mitigating investment strategy that utilizes options to limit the possible range of returns. To employ a fence, the investor purchases a security (a long position), a long put with a strike [阅读全文:]
摘要: A swap agreement created through the synthesis of two swaps differing in duration for the purpose of fulfilling the specific time-frame needs of an investor. Also referred to as a "forward start swap[阅读全文:]
摘要: The premium charged upon the initial purchase of a compound option.
In other words, the front fee is what it costs to acquire a compound option. If the compound option is exercised, a se[阅读全文:]
摘要: A cost effective strategy designed to limit the costs associated with exercising a call option. When a European call option is purchased, the present value of the strike price is invested in a risk-fr[阅读全文:]