underlying futures contract
21underlying — The asset, measure, or obligation on which a derivative, such as an option or futures contract, is based …
22underlying — The asset, measure, or obligation on which a derivative, such as an option or futures contract, is based …
23option contract — A unilateral contract giving the buyer the right, but not the obligation, to buy or sell a commodity, or a futures contract, at a specified price within a certain time period. It is unilateral because only one party (the buyer) has the right to… …
24Outright Futures Position — A long or short trade on an underlying futures contract that has the potential for unlimited profit, but also carries the risk of unlimited losses. Outright futures are also called naked futures because they leave the investor highly exposed. To… …
25Underlying — The something that the parties agree to exchange in a derivative contract. The New York Times Financial Glossary * * * underlying un‧der‧ly‧ing [ˌʌndəˈlaɪ ɪŋ◂ ǁ ər ] adjective 1. underlying figure/rate ECONOMICS a rate or figure that shows the… …
26Underlying — 1. In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2. In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or… …
27Underlying Asset — A term used in derivatives trading, such as with options. A derivative is a financial instrument whose price is based (derived) from a different asset. The underlying asset is the financial instrument (e.g., stock, futures, commodity, currency,… …
28underlying price — Cash market price of the contract from which futures and options contracts are derived. LIFFE …
29Commodity Futures Modernization Act of 2000 — The Commodity Futures Modernization Act of 2000 (CFMA) is United States federal legislation that officially ensured the deregulation of financial products known as over the counter derivatives. It was signed into law on December 21, 2000 by… …
30Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …
