53 Results for Tag: derivatives

Knock-Out Option

Knock-Out Option What is a 'Knock-Out Option' A knock-out option is an option with a built-in mechanism to expire worthless if a specified price level is exceeded. A knock-out option sets

Heating Degree Day (HDD)

Heating Degree Day (HDD) What is 'Heating Degree Day - HDD' The number of degrees that a day's average temperature is below 65oFahrenheit (18o Celsius), the temperature below which buildin

Hara-Kiri Swap

Hara-Kiri Swap What is 'Hara-Kiri Swap' An interest rate or cross-currency swap devoid of any profit margin for the originator. The term gets its name from Japanese banks' and securities h

Heath-Jarrow-Morton Model (HJM Model)

Heath-Jarrow-Morton Model (HJM Model) What is 'Heath-Jarrow-Morton Model - HJM Model' A model that applies forward rates to an existing term structure of interest rates to determine appropr

Hedge Accounting

DefinitionHedge accounting is an accountancy practice. Hedge Accounting What is 'Hedge Accounting' Hedge accounting is a method of accounting where entries for the ownership of a security

Implied Contract

DefinitionA quasi-contract is a fictional contract recognised by a court. The notion of a quasi-contract can be traced to Roman law and is still a concept used in some modern legal systems.

Illiquid Option

Illiquid Option What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have very low or no open interest. Expl

National Commodities And Derivatives Exchange (NCDEX)

National Commodities And Derivatives Exchange (NCDEX) What is 'National Commodities And Derivatives Exchange - NCDEX' India's largest and most recognized commodities exchange, which was es

Offsetting Transaction

Offsetting Transaction What is an 'Offsetting Transaction' In trading, an activity that exactly cancels the risks and benefits of another instrument in the portfolio. An offsetting transac

Over the Counter Trading

DefinitionOver-the-counter or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exch
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