A type of volatility swap where the payout is linear to variance rather than volatility. Therefore, the payout will rise at a higher rate than volatility…

A variable margin payment that is made by clearing members to their respective clearing houses based upon adverse price movements of the futures contracts…

A document frequently used as a delivery instrument to indicate ownership of precious metals stored in a bank, warehouse, or depository. Also known as…

The deliverable commodities in licensed warehouses and approved delivery facilities. The visible supply of commodities generally includes afloat and…

A forward contract whose underlying is the volatility of a given product. This is a pure volatility instrument allowing investors to speculate solely…

The quantity of futures contracts transacted over a specified period of time during a trading day.The volume of trade can be quoted from the actual number…

A receipt used in futures markets to guarantee the quantity and quality of a particular commodity being stored within an approved facility.Rather than…

A derivative security that gives the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time…

An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder…

The premium paid for the rights associated with a warrant. Like a derivative option, warrants will have an intrinsic value and extrinsic value. For a…

A derivative security that loses value due to time decay.If wasting assets are held for too long, they will ultimately lose all their value. Derivatives…

1. The intention of futures contract holders not to receive delivery of the underlying.2. Retail traders in the forex market who abide by the conventional…

An instrument used by companies to hedge against the risk of weather-related losses. The investor who sells a weather derivative agrees to bear this risk…

A type of weather derivative that obligates the buyer to purchase the value of the underlying weather index - measured in heating degree days (HDD) or…

A measure that is used by credit rating companies to determine the credit quality of a portfolio. This measure allows rating companies to look at a portfolio…

Light, sweet crude oil commonly referred to as "oil" in the Western world. WTI is the underlying commodity of the New York Merchantile Exchange's oil…

A condition found in futures markets in which the spot price of underlying commodities is not close to the futures price of the same contract. A wide…

An option associated with treasury bond or treasury note futures contracts that permits the short position to delay the delivery of the underlying.This…

Having the right to deliver on a futures contract at the last closing price, even though the contract is no longer trading. This is similar to the wild card option.

A commodities exchange in Winnipeg, Manitoba, that serves as Canada's only agricultural futures and options exchange. Canola is the Winnipeg Commodities…

The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. It is typically controlled by large professional traders, program…

The seller of an option who collects the premium payment from the buyer. For example, a writer holds a short position on a call option. If the call option…

An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra platform offers increased…

A type of debt-instrument-based option that derives its value from the difference between the exercise price and the value of the yield of the underlying…

A swap agreement between a municipality and a financial intermediary. Also known as a "perfect swap" or "actual rate swap". The municipality pays a fixed…

A type of positive-carry collar that secures a return through the purchase of a cap and sale of a floor. Also called "zero cost options" or "equity risk…

A group of investments which, when combined, create a zero net value. Zero-investment portfolios can be achieved by simultaneously purchasing securities…

A situation in which one participant's gains result only from another participant's equivalent losses. The net change in total wealth among participants…