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Spread

A transaction in which the trader simultaneously purchases, or takes a long position in, a contract on a specific asset...

Spread Transaction

A transaction in which the trader simultaneously purchases, or takes a long position in, a contract on a specific asset...

Basis Risk

The danger of loss which is associated with an unexpected widening or narrowing in the basis between the time of...

Interest Rate Futures

A futures contract which allows the buyer to lock in a future investment rate today or at a specific incoming...

Swap Futures

A futures contract which typically has an interest rate swap as underlying. It offers an instrumental tool for corporate treasurers,...

Spark Spread Futures

A futures contract that has the spark spread as underlying. This implies that an investor buys or sells the price...

Short the Basis

The purchase of futures contracts as a hedge against a short position in futures or options whereby a trader is...

Spark Spread

The spread between the price of electricity and the price of natural gas needed to generate that electricity. More specifically,...

Crush Spread

A commodity trading strategy that is used in the soybeans futures market and involves the purchase of soybean futures and...

Non-Deliverable Forward

A derivative instrument which is used for hedging the exchange rate risk associated with non-convertible currencies. By definition, a non-deliverable...