underlying futures contract
111Commitments of Traders — The Commitments of Traders is a report issued by the Commodity Futures Trading Commission enumerating the holdings of participants in various futures markets. These futures markets are places to buy or sell, for example, grains, cattle, financial …
112Stranger Originated Life Insurance — (STOLI) is a life insurance arrangement, in which speculators, who have no relationship to a person, initiate a insurance policy against their life and fund the premium payments for investment purposes. [cite web… …
113Current Delivery — A type of futures contract that requires the delivery of the underlying commodity in the current or following month before other futures contracts of the same commodity with other delivery dates. Multiple futures contracts delivering the same… …
114Convergence — The movement of the price of a futures contract toward the price of the underlying cash commodity. At the start, the contract price is higher because of the time value. But as the contract nears expiration, the futures price and the cash price… …
115Dodd–Frank Wall Street Reform and Consumer Protection Act — Full title An Act to promote the financial stability of the United States by improving accountability and transparency in the financial system, to end too big to fail , to protect the American taxpayer by ending bailouts, to protect consumers… …
116Wide Basis — A condition found in futures markets in which the spot price of underlying commodities is not close to the futures price of the same contract. A wide basis suggests that there is an abundant supply of or lack of demand for the underlying… …
117calendar spread — The purchase of one delivery month of a given futures contract and simultaneous sale of another delivery month of the same commodity on the same exchange. The purchase of either a call or put option and the simultaneous sale of the same type of… …
118Commodity broker — A commodity broker is a firm or individual who executes orders to buy or sell commodity contracts on behalf of clients and charges them a commission. A firm or individual who trades for his own account is called a trader. Commodity contracts… …
119Total return swap — Total return swap, or TRS (especially in Europe), or total rate of return swap, or TRORS, is a financial contract which transfers both the credit risk and market risk of an underlying asset. Contract definition Let us assume that one bank (bank… …
120Diversification (finance) — Finance Financial markets Bond market …
