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Bond Futures Option

A futures option in which the underlying of the underlying futures is a bond. In more specific terms, a bond...

Notional Principal Contract

Derivative contracts/ arrangements such as swaps, options, caps, floors, forward rate agreements (FRA), futures, or any similar instrument. The value...

Notionals

Notional principal contracts/ arrangements such as swaps, options, caps, floors, forward rate agreements (FRA), futures, or any similar instrument. The...

Actuals

The physical or cash commodity as differentiated from a futures contract in which it is used as an underlying. Differently...

Assignment

The designation made by a clearing corporation requesting a specified option writer to purchase in case of a put option...

Aggregation

The adding up of all futures positions owned or controlled by one investor or a group of investors, so that...

Gross Basis

A methodology which is used by an exchange clearinghouse to calculate the number of outstanding futures contracts in order to...

Tick

The smallest price change increment that a future contract is allowed to have by an exchange. The tick for a...

Minimum Price Movement

The smallest price change increment that a future contract is allowed to have by an exchange. The minimum price movement...

MVHR

It stands for minimum variance hedge ratio; a mathematical tool for determination of the optimal cross hedging ratio. This means...