Tag: derivatives

Level 3 Assets: Definition and Characteristics

Level 3 assets refer to financial instruments that are not actively traded in the market and are difficult to value due to a lack...

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...

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...

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...

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...
Hedge Accounting

Hedge Accounting

What is 'Hedge Accounting' Hedge accounting is a method of accounting where entries for the ownership of a security and the opposing hedge are treated...
Implied Contract

Implied Contract

What is an implied contract An implied contract is a legally binding agreement between two parties that is not written or spoken, but is simply...

Illiquid Option

What is 'Illiquid Option' An option contract that cannot be sold for cash quickly at the prevailing market price. Illiquid options have...

National Commodities And Derivatives Exchange (NCDEX)

What is 'National Commodities And Derivatives Exchange - NCDEX' India's largest and most recognized commodities exchange, which was established in 2003. The...

Offsetting Transaction

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

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