Alphabetical - F

Factoring	Buying trade debts on a regular basis to assist cash flow - usually done by subsidiaries of banks.
Fair Value	This is calculated as the level where the contract should trade taking into account the cost of carry.
FASB	Financial Accounting Standards Board.
Federal Reserve	The US monetary authority which plays a role similar to that of the Bank of England.
FedWire	Electronic payments system between Federal Reserve banks in the US
Fill-or-Kill	An order on an exchange which is either executed in its entirety at the stipulated price or cancelled.
Finance Houses	Institutions which specialise in funding hire-purchase agreements
Financial Intermediary	A bank or other financial institution that facilitates the flow of funds between different entities in the economy.
First Coupon Date	??
FIX	Electronic Communication Protocol
Fixed Commissions	??
Fixed Exchange Rates	Currencies with set values against each other which vary only in times of crisis when one or more currencies are revalued or devalued.
Flat Volatility	The name given to a volatility used to price a cap when the same volatility is used for each caplet.
Flat Yield	The annual percentage return on a bond taking into account the buying price, for example if £100 nominal worth of an 8% bond is bought for $50, the yield is 16%. Also called the running and interest yield (see redemption yield)
Flex Option	An option traded on an exchange with terms that are different from the standard options traded by the exchange.
Flip Flop FRN	A Floating Rate Note that has a very long final maturity or even a perpetual issue with an option to convert after a fixed period into a Short Dated FRN.
Floating Exchange Rates	Currencies whose values against each other are set by market forces.
Floating Rate	A loan with the interest rate varied at agreed intervals, linked to a base rate for example LIBOR
Floating Rate Note	A medium to long term debt obligation with a variable interest rate which is adjusted periodically.
Floor	An agreement with a counterparty which sets an upper limit to interest rates for the cap buyer for a stated time period.
Floor Rate	The interest rate in an interest rate floor agreement.
Floor-Ceiling Agreement	see Interest Rate Collar
Floored Floaters	??
Floorlet	One component of a Floor
Foreign Bond	A bond issued in a domestic market other than its own.
Foreign Currency Option	An option on a foreign exchange rate.
Forfaiting	Raising money by selling a company's invoices
Forward Contract	A contract to buy or sell a commodity or security for future delivery at a price agreed today
Forward Exchange Rate	The forward price of one unit of a foreign currency
Forward Market	Market in which currencies are traded months or years ahead.
Forward Price	The delivery price in a forward contract that causes the contract to be worth zero.
Forward Rate	A rate agreed now for a future purchase or sale of a currency.
Forward Rate Agreement	Agreement that a certain interest rate will apply to a certain principal amount for a certain time period in the future.
Forward Start Option	An option designed so that it will be at the money at some point in the future.
Forward Swap	see Deferred Swap
Forward-Forward Agreement	Arrangement to lend or borrow a set sum at a date in the future for a set period at a set rate.
FOX	London Futures and Options Exchange (commodities)
Fraud	??
Freddie Mac	Federal National Mortgage Association (FNMA)
FSA	Financial Services Authority
FTSE Index	Financial Times ?? Index that tracks the share prices of 100 leading company.
Fungible	Exchangeable - for example, a contract of one futures exchange and another will be identical. Can be opened in one and closed in the other exchange (or vice versa). Also used for further issues of bonds on exactly the same terms (and accrued interest) as those issued earlier.
Futures	Instruments which give the buyer the right to purchase a commodity at a future date
Futures Contract	Similar to forward but not expected to go to delivery as the position will be closed out with the opposite contract.
Futures Option	An option on a futures contract.
Futures Price	The delivery price currently applicable to a futures contract

Factoring Buying trade debts on a regular basis to assist cash flow - usually done by subsidiaries of banks.
Fair Value This is calculated as the level where the contract should trade taking into account the cost of carry.
FASB Financial Accounting Standards Board.
Federal Reserve The US monetary authority which plays a role similar to that of the Bank of England.
FedWire Electronic payments system between Federal Reserve banks in the US
Fill-or-Kill An order on an exchange which is either executed in its entirety at the stipulated price or cancelled.
Finance Houses Institutions which specialise in funding hire-purchase agreements
Financial Intermediary A bank or other financial institution that facilitates the flow of funds between different entities in the economy.
First Coupon Date ??
FIX Electronic Communication Protocol
Fixed Commissions ??
Fixed Exchange Rates Currencies with set values against each other which vary only in times of crisis when one or more currencies are revalued or devalued.
Flat Volatility The name given to a volatility used to price a cap when the same volatility is used for each caplet.
Flat Yield The annual percentage return on a bond taking into account the buying price, for example if £100 nominal worth of an 8% bond is bought for $50, the yield is 16%. Also called the running and interest yield (see redemption yield)
Flex Option An option traded on an exchange with terms that are different from the standard options traded by the exchange.
Flip Flop FRN A Floating Rate Note that has a very long final maturity or even a perpetual issue with an option to convert after a fixed period into a Short Dated FRN.
Floating Exchange Rates Currencies whose values against each other are set by market forces.
Floating Rate A loan with the interest rate varied at agreed intervals, linked to a base rate for example LIBOR
Floating Rate Note A medium to long term debt obligation with a variable interest rate which is adjusted periodically.
Floor An agreement with a counterparty which sets an upper limit to interest rates for the cap buyer for a stated time period.
Floor Rate The interest rate in an interest rate floor agreement.
Floor-Ceiling Agreement see Interest Rate Collar
Floored Floaters ??
Floorlet One component of a Floor
Foreign Bond A bond issued in a domestic market other than its own.
Foreign Currency Option An option on a foreign exchange rate.
Forfaiting Raising money by selling a company's invoices
Forward Contract A contract to buy or sell a commodity or security for future delivery at a price agreed today
Forward Exchange Rate The forward price of one unit of a foreign currency
Forward Market Market in which currencies are traded months or years ahead.
Forward Price The delivery price in a forward contract that causes the contract to be worth zero.
Forward Rate A rate agreed now for a future purchase or sale of a currency.
Forward Rate Agreement Agreement that a certain interest rate will apply to a certain principal amount for a certain time period in the future.
Forward Start Option An option designed so that it will be at the money at some point in the future.
Forward Swap see Deferred Swap
Forward-Forward Agreement Arrangement to lend or borrow a set sum at a date in the future for a set period at a set rate.
FOX London Futures and Options Exchange (commodities)
Fraud ??
Freddie Mac Federal National Mortgage Association (FNMA)
FSA Financial Services Authority
FTSE Index Financial Times ?? Index that tracks the share prices of 100 leading company.
Fungible Exchangeable - for example, a contract of one futures exchange and another will be identical. Can be opened in one and closed in the other exchange (or vice versa). Also used for further issues of bonds on exactly the same terms (and accrued interest) as those issued earlier.
Futures Instruments which give the buyer the right to purchase a commodity at a future date
Futures Contract Similar to forward but not expected to go to delivery as the position will be closed out with the opposite contract.
Futures Option An option on a futures contract.
Futures Price The delivery price currently applicable to a futures contract