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Open Trade Equity

The unrealized gain or loss on open positions in futures. That is, an OTE is the net of unrealized profits...

OTE

It stands for open trade equity; this refers to the unrealized gain or loss on open positions in futures. That...

Banging The Close

A manipulative or disruptive trading practice whereby a trader buys or sells a large quantity of futures contracts during the...

OIS Futures

A futures contract which has an overnight index swap as underlying. An overnight index swap (OIS) futures tracks the overnight effective federal funds rate...

Overnight Index Swap Futures

A futures contract which has an overnight index swap as underlying. An overnight index swap (OIS) futures tracks the overnight effective federal funds rate...

Asset Mismatch

A situation that arises when the risk associated an asset is to be hedged but there is no futures contract on that...

Alpha Transport

A method of transporting the active return (alpha) among asset classes by separating and transporting uncorrelated incremental returns from one...

Commodity Index Swap

A commodity swap which has a commodity index as underlying. In this swap, cash flows are intended to replicate the commodity index. The...

Real Rate Swap

A CPI-linked swap where counterparties exchange a floating nominal rate like LIBOR on an annual basis against an inflation-indexed bond...

M2M

It stands for marking to market; the practice which is used to revalue a financial instrument, in general. In the...