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...

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...

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...

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...

Hedge Accounting

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

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...

Illiquid Option

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

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,...

Offsetting Transaction

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

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...

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