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MTM

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

Marking To Market

The practice which is used to revalue a financial instrument, in general. In the context of derivatives, marking to market...

Futures

An exchange-traded contract (and a derivative) whereby the holder is under obligation to buy or sell a specific asset (security or commodity) for a predetermined...

Futures Contract

An exchange-traded contract (and a derivative) whereby the holder is under obligation to buy or sell a specific asset (security or commodity) for a predetermined...

Cross-Currency Derivative

An instrument or security whose performance depends at least on two different currencies (i.e., two different markets: domestic and foreign)....

Tail Hedge

An adjustment to the number of futures contracts used to hedge a position in an attempt to make the present market exposure...

Tailing The Hedge

In the context of futures contracts, it is a small adjustment that has to be made to the formula used...

Implied Price TED

The difference between a hypothetical note's yield and the Treasury note's actual yield. The hypothetical note's yield is the full price...

Bullet

A standard option on an underlying contract which is composed of a strip of monthly, quarterly or seasonal futures, whereas...

RPI Swap

A swap which involves an exchange of interest calculated by reference to the Retail Prices Index (RPI) and another reference...