Tag: theory
Backwardation
DefinitionNormal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the...
Back-Of-The-Envelope Calculation
What is 'Back-Of-The-Envelope Calculation' An informal mathematical computation, often performed on a scrap of paper such as an envelope. A back-of-the-envelope calculation...
Call Date
DefinitionA callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at...
Contango
DefinitionContango is a situation where the futures price of a commodity is higher than the anticipated spot price at maturity of the futures contract....
Back-to-Back Commitment
What is 'Back-to-Back Commitment' A commitment to make a second take-out loan that piggybacks another loan. With a back-to-back commitment, once the...
Back Months
What is 'Back Months' The available futures contracts for a particular commodity that possess expirations or delivery dates furthest into the future....
Call Auction
What is 'Call Auction' Where participants buy or sell units of a good. At a call auction, participants place orders to buy...
Call Rule
What is 'Call Rule' A exchange rule whereby the official bidding price for a cash commodity is competitively established at the end...
CAPM – Capital Asset Pricing Model
The CAPM is a model that helps in determining the price of securities keeping in view the risk an investor takes, and the return...
Called Away
What is 'Called Away' A term used to describe the elimination of a contract due to the obligation of delivery. This occurs...