underlying futures contract
101Against Actual — An order between two traders looking to hedge their positions, in which the traders swap futures positions in exchange for cash positions. Against actual transactions are recorded on commodity and futures exchanges, and are governed by the… …
102Emergency Economic Stabilization Act of 2008 — This article is about one division of an enacted statute. For the entire statute, see Public Law 110 343. For the enacted rescue program, see Troubled Asset Relief Program. The Emergency Economic Stabilization Act of 2008 (Division A of Pub.L.… …
103Margin (finance) — For the 2011 film, see Margin Call. In finance, a margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty (most often their broker or an exchange). This risk can… …
104Interest Rate Future — A futures contract with an underlying instrument that pays interest. An interest rate future is a contract between the buyer and seller agreeing to the future delivery of any interest bearing asset. The interest rate future allows the buyer and… …
105Credit spread (options) — Finance Financial markets Bond market …
106Cash-And-Carry-Arbitrage — A combination of a long position in an asset such as a stock or commodity, and a short position in the underlying futures. This arbitrage strategy seeks to exploit pricing inefficiencies for the same asset in the cash (or spot) and futures… …
107out-of-the-money — A call is out of the money when the strike price is above the underlying futures price. A put is out of the money when the strike price is below the underlying futures price. The CENTER ONLINE Futures Glossary The situation where an option has… …
108spread trade — A special type of pit or CME Globex platform trade that allows traders to trade the differential between either:1. The price of a futures or options commodity in different contract months; OR2. The price of two futures or options commodities in… …
109Derivatives market — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …
110basis trading — is the simultaneous entry into both a cash position for a particular product and an equal and opposite futures position on the same underlying. A basis trader looks to profit from a change in the relationship between the cash price and the future …
