Complete List

Abandon OptionAn option holder chooses not to exercise their option
Absolute RiskThe volatility of total returns
AcceptanceShort-term debt instruments, drawn on a bank for future payment
Acceptance HouseGuarantees payment of trade bills used to finance trade deals and goods in shipment
AcceptingSigning a Bill of Exchange signifying an agreement to pay. Subsequent or alternative signature by a bank virtually guarantees payment.
Account??
Accreted Value??
Accreting SwapA swap in which the principal increases in each time period.
Accrual SwapAn interest rate swap where interest on one side accrues only when a certain condition is met.
Accrued InterestInterest that has been earned but not yet paid
ActuaryA statistician who calculates risk
AdministratorAn Administrator is responsible for ensuring the efficient day-to-day operation of a fund including the accounting.
AlphaA measure of performance on a risk adjusted basis.
Alternative Investment MarketA market dedicated to smaller companies.
Alternative Minimum Tax??
American Depository ReceiptThe form in which foreign shares can be traded in the US without a formal listing.
American OptionAn option that can be exercises at any time during its life.
AmortisationRepayment of the principal on a loan or bond installments over a period of time.
Amortising??
Amortising SwapA swap where the notional principal decreases in a predetermined way as time passes.
Annual Percentage RateUsed to describe the true cost of the money borrowed on mortgages, loans and credit cards.
Annual Yield??
AnnuitySomething that pays regular cash flows at fixed periods over a given period of time.
APACSControlling cheque clearing, BACS and CHAPS in the UK
ArbitrageTaking advantage of an anomaly in prices or rates in different markets.
ArbitrageurA person who engages in arbitrage opportunities.
Article 65Article for the Japanese Financial Code - prevents commercial banks from engaging in some investment banking
Asian OptionAn option with a payoff dependent on the average price of an underlying asset during a specified period.
Ask PriceThe price that a dealer is offering to sell a security.
Ask RateOffer Rate
Asset Backed Securities??
Asset Pricing??
Asset-Or-Nothing Call OptionAn option that provides a payoff equal to the asset price if the asset price is above the strike price and zero otherwise.
Asset-Or-Nothing Put OptionAn option that provides a payoff equal to the asset price if the asset price is below the strike price and zero otherwise.
AssetsThe side of the balance sheet dealing with lending
AssuranceThe business of life insurance and pensions
As-You-Like-It OptionChooser Option
At-Best OrderAn order to a broker to buy and or sell a contract at the best price available.
At-The-Money OptionAn option in which the strike price equals the price of the underlying asset.
Auction Market Preferred Stock??
AuditInspection of a companys books by independent accountants
Automated Clearing House??
Automated Pit TradingA computerised trading system used at the LIFFE in addition to open cry
Automatic ExerciseWhen the clearing house automatically exercises in-the-money options at expiry.
Average-Price Call OptionAn option giving a payoff equal to the greater of zero and the amount by which the average price of the asset exceeds the strike price.
Average-Price Put OptionAn option giving a payoff equal to the greater of zero and the amount by which the strike price axceeds the average price of the asset.
Average-Strike OptionAn option that provides a payoff dependent on the difference between the final asset price and the average asset price.
Back OfficeAccounting and Settlements
Back-TestingTesting a value-at-risk or other model using historic data.
BackwardationWhen the spot or near term price of a commodity is higher than the forward rate.
Backwards InductionA procedure for working from the end of a tree to its neginning in order to value an option.
Bank BillA Bill of Exchange accepted by a bank on the central bank's "eligible" list. The central bank itself would rediscount a bill of this type. Also called an Eligible Bill
Bankers AcceptanceBills of exchange acceppted by large banks
Bankers Automated Clearing Services??
Barrier OptionAn option whose payoff depends on whether the path of the underlying asset has reached a barrier (i.e. a certain predetermined level).
Base Currency??
Base Rate??
BasisThe difference between the spot price and the futures price of the commodity.
Basis PointOne hundredth of a percent (0.01%)
Basis RiskWhen relationships between products used to hedge each other change or break down
Basis SwapSwap where cash flows determined by one floating reference rate are exchanged for cash flows determined by another floating reference rate.
Basket OptionAn option that provides a payoff dependent on the value of a portfolio of assets.
BearA pessimist - selling securities in the belief of a falling stock and bond market, hence a "Bear" market
Bear MarketA falling market
Bear SpreadA short position in a put option with a strike price X1 combined with a long position in a put option with strike price X2 where X2 > X1. (A bear spread can also be created with call options).
Bearer BondA bond payable to whoever is in possession - that is no central register
Bed and BreakfastSelling shares one day and buying them back the next - at the end of the tax year to maximise Capital Gains Tax allowance or claim losses against profits
Bermudan OptionAn option that can be exercides on specified dates during its life.
BetaA measure of systematic risk of an asset.
Bid PriceThe price that a dealer is prepared to pay for an asset.
Bid RateRate of interest offered for deposits in banking. Generally the dealer's buying price for equities, bonds, foreign exchange etc
Bid-Ask SpreadThe amount by which the ask price exceeds the bid.
Bid-Offer Spreadsame as Bid-Ask Spread
Big BangDeregulation of the UK Stock Market 27 October 1986. New regulation and an automated price quotation system. The day when minimum commissions were abolished
BillA short-term (3 months or so) instrument which pays interest to the holder and can be traded. Some bills do not pay interest but are issued at a discount to their face value.
Bill of ExchangeA signed promise to pay by a receiver of goods or services and kept by the supplier.
Binary OptionOption with discontinuous payoff; for example a cash-or-nothing option or an asset-or-nothing option.
Binomial ModelA model where the price of an asset is monitored over successive short periods of time. In each short period of time it is assumed that only two price movements are possible.
Binomial TreeA tree that represents how an asset price can evolve under the binomial model.
Blacks ApproximationAn approximate procedure developed by Fischer Black for valuing a call option on a dividend paying stock.
Blacks ModelAn extension of the Black Scholes model for valuing European Options on futures contracts.
Black-Scholes ModelThe original European Stock Option pricing model written by Black and Schole in 1972
Blue ChipLarge established companies. The most highly regarded shares.
Board WashingThe individual who handles limit orders in some exchanges. The board broker makes information on outstanding limit orders available to other traders.
BOBLShort name for the short-term German government bond contract on the DTB
BondAn instrument that pays a fixed amount of interest to the holder.
Bond Factor??
Bond Ladder ??
Bond OptionAn option where a bond is the underlying asset.
Bond Provisions??
Bond Stripping??
Bond WashingSelling a bond prior to the ex dividend date to take a capital gain instead of receiving income.
BonosSpanish Government Bonds
Bonus IssueA free issue of shares to existing shareholders
Bonus Value??
Book Entry??
Book ValueThe value of an asset as entered in a company's balance sheet
Bootstrap MethodA procedure for calculating the zero-coupon yield curver from market data.
Boston Optionsee Deferred payment option
Break Forwardsee Deferred payment option
BrokerAn individual (or firm) that acts as an intermediary putting buyers and sellers together for a brokerage fee.
Building SocietyInstitutions whose primary function is to accept the savings of small investors and channel them to house buyers in return for the security of a mortgage on the property.
BullAn optimist, buying securities in the belief of a rising (stock and bond) market, hence a bull market
Bull MarketA rising market
Bull SpreadBuying a call option (a long position in a call) with a strike X1 combined with selling a call (short position in a call) with a strike price X2 where X2>X1 (a bull spread can also be created using put options).
Bullet RepaymentThe whole of a bond or bank loan is repaid at maturity (instead of staged payments in the last few years)
BundesbankThe German Central Bank
Butterfly SpreadA position that is created by taking a long position in a call with strike price X1, a long position in a call with strike price X3 and a short position in two calls with strike price X2 where X3 > X2 > X1 and X2 = 0.5(X1 + X2).
CableShorthand for dollar/sterling rate
Calendar SpreadA position that is created by taking a long position in a call option that matures at one time and a short position in a similar call option that matures at a different time.
Call Date??
Call MoneyMoney lent by banks to other banks or discount houses which can be recalled at noon each day
Call OptionAn option to buy an asset at a certain price on a certain date some time in the future.
Call Protection??
Call Risk??
Call Schedule??
Callable BondThe issuer has the right to redeem the bond at a specified earlier date than the one orginally fixed as the final maturity.
Callable Credit Products??
Cancelable SwapSwaps that can be cancelled by one side of prespecified dates.
CapAn agreement with a counterparty which sets an upper limit to interest rates for the cap buyer for a stated time period.
Cap RateThe rate determining payoffs in an interest rate cap
Capital AdequacyThe need to maintain adequate capital to cover counterparty risk and position risk
Capital Asset Pricing ModelA model relating the expected return on an asset to its beta.
Capital Growth BondIssue price at par (100%) with redemption at a multiple of that amount.
Capital MarketsThe market for medium and long term securities
Capital RatioThe ratio of a banks primary capital to a weighted value of assets
CapitalisationMarket capitalisation of a company is the number of shares multiplied by the current price
Capitalisation IssueAn issue where funds from a company's reserves are converted into shares and offered free of charge to shareholders.
CapletOne component on an interest rate cap
Cash Flow MappingA procedure for representing an instrument as a portfolio of zero-coupon bonds for the purpose of calculating value at risk.
Cash RatioThe proportion of a bank's liabilities which it considers prudent to keep in the form of cash.
Cash SettlementWhere the product is settled at expiry, based on the differential between the fixed/guaranteed price and the underlying instrument. Procedure for settling a futures contract in cash rather than by delivering the underlying asset.
Cash-Or-Nothing Call OptionAn option that provides a fixed predetermined payoff if the final asset price is above the strike price and zero otherwise.
Cash-Or-Nothing Put OptionAn option that provides a fixed predetermined payoff if the final asset price is below the strike price and zero otherwise.
CAT BondBond where the interest, and possibly, the principal paid are reduced if a particular category of "catastrophic" insurance claims exceed a certain amount.
CDOA security based on a mix of debt and credit risk. Different laters often referred to as tranches (or slices) each having different risk and maturities.
Central Counterparty ModelSet up by the Stock Exchange to remove credit risk when buying and selling.
Certificate of DepositA tradeable deposit issued by banks and building societies.
Certificates of ParticipationA type of municipal bond that are often used to finance capital improvement projects or equipment.
CGTCapital Gains Tax
CHAPSClearing House Automated Payments System - for electronic clearing of payments the same day (UK)
Cheapest-To-Deliver BondThe bond that is cheapest to deliver in the Chicago Board of Trade bond futures contract.
Chinese WallA theoretical barrier between different sections of a firm to avoid fraud (i.e. conflicts of interest or insider dealing). One part of the firm may not pass sensitive information to another if it is against a client's interest.
CHIPSClearing House Interbank Payments - electronic bank clearing in New York
Chooser OptionAn option where the holder has the right to choose whether it is call or a put at some point during its life.
CIRCUSCombined Interest Rate and Currency Swap
Clean PricePrice of a bond not including the accrued interest element. This is the quoted price. The cash price paid for the bond (or dirty price) is calculated by adding the accrued interest to the clean price.
Clearing BankBanks which are part of the clearing system which significantly reduces the number of interbank payments.
Clearing HouseA firm that guarantees the performance of the parties in an exchange-traded derivatives transaction. Central Body guaranteeing contracts in a traded options/futures market. Also known as clearing corporation.
Clearing MarginA margin posted by a member of a clearing house.
CLO??
Closing OutFor futures market - taking the opposite contract for example having previously bought 100 tons of cocoa for June delivery, the buyer now sells 100 tons for the same delivery (or vice-versa)
CMEChicago Mercantile Exchange
CMOCollaterized Mortgage Obligation - A mortgage backed security where investors are divided into classes and there are rules for determining how principal repayments are channeled to the classes.
Collarsee Interest Rate Collar
Collateral??
Collaterised??
CombinationA position involving both calls and puts on the same underlying asset.
Commercial BankingThe classic banking business of taking deposits and lending money, either retail or wholesale
Commerical PaperAn unsecured IOU issued by large companies and banks.
Commission BrokersIndividuals who execute trades for other people and charge a commission for doing so.
Commodity SwapA swap where cash flows depend on the price of a commodity.
Complex Power Duals??
Compound OptionAn option on an option. The holder (buyer) has an option to purchase another option on a pre-set date at a pre-agreed premium.
Compounding FrequencyThis defines how an interest rate is measured.
Compounding SwapSwap where interest compounds instead of being paid.
Concert PartyA group acting together (secretly) in a takeover situation for example three people each buy 2.9% of shares to avoid no longer being able to hide behind nominee status.
ConfirmationContract confirming verbal agreement between two parties to a trade in the over-the-counter market.
ConsolidationReorganising share holdings so that, for example 10 shares at 10p are replaced by a one £1 nominal
Constant Maturity SwapA swap where a swap rate is exchanged for eother a fixed rate or a floating rate on each payment date.
Constant Maturity Treasury SwapA swap where the yield on a Treasury Bond is exchanged for either fixed rate or floating rate on each payment date.
Consumption AssetAn asset held for consumption rather than investment
ContangoA situation where the futures price is above the expected future spot price.
Continuous CompoundingA way of quoting interest rates. It is the limit as the assumed compounding interval is made smaller and smaller.
Contract for DifferenceA derivative product to trade the price differential over an indefinite time period.
Contract SizeThe unit of trading on a derivatives contract.
Control Variate TechniqueA technique that can sometimes be used for improving the accuracy of a numerical procedure.
Convenience YieldA measure of the benefits from ownership of an asset that are not obtained by the holder of a long futures contract on the asset.
Conversion FactorA factor used to determine the number of bonds that must be delivered in the bond futures market.
ConvertibleA convertible bond may be converted later into equity, some other bond or even a commodity
Convertible BondA corporate bond that can be converted into a predetermined amount of the company's equity at certain times during its life.
Convertible Rate FRNAn issue which carries the option to convert either from an initial floating rate note into a fixed rate bond or from a fixed rate bond into a floating rate note.
ConvexityA measure of the curvature in the relationship between bond prices and bond yields.
Convexity AdjustmentAn overworked term. It can refer to the adjustment necessary to convert a futures interest rate to a forward interest rate.
Corporate Bond??
Corporate FinanceThe department of an investment bank dealing with takeovers, mergers and strategic advice to companies
Cost of CarryThe storage costs plus the cost of financing as asset minus the income earned on the asset.
CounterPartyThe opposite side in a financial transaction.
CounterParty RiskThe risk involved if a counterparty fails to settle
CouponInterest payment made on a bond.
Coupon Rate??
Coupon StrippingDetaching the coupons from a bond and selling the coupons and the principal as individual zero coupon bonds
CouponsIssued with bearer bonds to enable the holder to claim the interest.
CoverAn abbreviation of "short cover".
Covered BondIs a bond issued by a financial institution that remains on its balance sheet.
Covered CallA short position in a call option on an asset combined with a long position in the asset.
Covered WarrantA warrant issued by a party other than the originator or issuer of the underlying asset
Covered WritingWhere an option is sold against an existing position.
Credit Default SwapAn instrument that gives the holder the right to dell a bond for its face value in the event of a default by the issuer.
Credit DerivativeA derivative whose payoff depends on the creditworthiness of the one or more entities
Credit Enhancement??
Credit RatingsA measure of the creditworthiness of a bond issue.
Credit RiskThe risk that a loss will be experienced because of the default by the counterparty in a derivatives transaction.
Credit SpreadThe interest rate spread between 2 debt issues of similar duration, maturity etc.
Credit Spread OptionOption whose payoff depends on the spread between the yields earned on two assets.
Credit Valuation AdjustmentThis is the market value of the counterparty credit-risk.
CRESTThe new UK Electronic settlement registering system introduced in July 1996.
CTDCheapest To Deliver bond
Cum DividendMeans the buyer will get the recently announced dividend.
CumulativeApplied to a Preference Share - if dividend is missed it is still owed to the holder.
Currency RiskThe risk of losses resulting from movements in currency exchange rates.
Currency Swap??
Currency Warrants??
Current Yield??
CUSIP??
Custodian??
Cyclical StockThe share prices of these companies move dramatically (up and down) relative to the economy.
Cylinder??
Dated Date??
DAX??
Day Count??
Day TradeA position opened and closed on the same day.
Dealing Spread??
Debenture??
Debt Convertible??
Deep Discount BondThis is a bond with issue price significanly below maturity price, due to lack of coupon or a coupon below the market rate.
Default??
Defensive StockThe share prices of these companies does not move dramatically (up and down) relative to the economy.
Deferred Payment Option??
Deferred Swap??
Delivery??
Delta??
Delta Hedging??
Delta Neutral Portfolio??
Depository ReceiptCertificates which represent ownership of a given number of company's shares which can be listed and traded separately from the underlying shares (eg ADRs and GDR)
Depreciation??
Derivatives??
Devaluation??
Diagonal Spread??
Differential Swap??
Dilution??
Dirty Price??
DiscountThe margin by which the purchase price is cheaper than the redemption price
Discount Bond??
Discount Broker??
Discount House??
Discount Instrument??
Discount Margin??
Discount Rate??
Discounting??
Disintermediation??
Dividend??
Dividend Paying Stock??
Dividend Yield??
Down-and-In Option??
Down-and-Out Option??
Downside Risk??
Duration??
Duration Matching??
Dynamic Hedging??
Early Exercise??
Earnings Yield??
EBITDA??
ECGD??
ECU??
EDR??
Efficient Market Theory??
EFTPOS??
Eligible Bill??
Embedded Option??
Empirical Research??
EMS??
EMU??
Endowment Mortgage??
EPS??
Equity??
Equity Collar??
Equity Convertible??
Equity Swap??
ERM??
ETF??
Eurex??
EURIBOR??
Euro??
EuroBond??
EuroClear??
EuroCurrencies??
EuroCurrency??
EuroDollar??
EuroDollar Futures Contract??
EuroDollar Interest Rate??
EuroMarket??
EuroNext??
EuroNote??
European Option??
EWMA??
Exchange Option??
Exchange Rate??
Exchange Traded??
Ex-Dividend??
Ex-Dividend Date??
Executive Stock Option??
Exercise Price??
Exotic Option??
Exotics??
Expectations Theory??
Expected Value of a Variable??
Expiry Date??
Exponential Weightings??
Exponentially Weighted Moving Average Model??
Extendable Bond??
Extendable Swap??
Factoring??
Fair Value??
FASB??
Federal Reserve??
FedWire??
Fill-or-Kill??
Finance Houses??
Financial Intermediary??
First Coupon Date??
FIX??
Fixed Commissions??
Fixed Exchange Rates??
Flat Volatility??
Flat Yield??
Flex Option??
Flip Flop FRN??
Floating Exchange Rates??
Floating Rate??
Floating Rate Note??
Floor??
Floor Rate??
Floor-Ceiling Agreement??
Floored Floaters??
Floorlet??
Foreign Bond??
Foreign Currency Option??
Forfaiting??
Forward Contract??
Forward Exchange Rate??
Forward Market??
Forward Price??
Forward Rate??
Forward Rate Agreement??
Forward Start Option??
Forward Swap??
Forward-Forward Agreement??
FOX??
Fraud??
Freddie Mac??
FSA??
FTSE Index??
Fungible??
Futures??
Futures Contract??
Futures Option??
Futures Price??
Gamma??
Gamma Neutral Portfolio??
Gearing??
Gearing Ratio??
General Obligation Bonds??
Gilt Edged Security??
Gilt Warrants??
Gilts??
Global Bond??
Global Depository Receipt??
Globalisation??
GLOBEX??
Golden Hello??
Goodwill??
Greeks??
Gross Redemption Yield??
Guaranteed Bond??
Hard Currencies??
Harrison and Kreps??
Hedge??
Hedge Fund??
Hedge Ratio??
Hedger??
Hedging??
High Yield Bonds??
Historic Volatility??
Historical Dividend??
Historical Simulation??
Holiday Calendar??
Hybrid Products??
IDB??
IMPA??
Implied Distribution??
Implied Volatility??
Implied Volatility Trees??
Index Amortizing Swap??
Index Arbitrage??
Index Futures??
Index Option??
Indexed Principal Swap??
Indices??
Ineligible Bank Bills??
Inflation??
Initial Margin??
Initial Public Offering??
Insider Dealing??
Insolvent??
Insurance??
Insured Bonds??
InterBank Market??
Inter-dealer Broker??
Interest??
Interest Only??
Interest Rate Cap??
Interest Rate Collar??
Interest Rate Derivative??
Interest Rate Floor??
Interest Rate Option??
Interest Rate Swap??
Interest Yield??
International Bond??
International Monetary Fund??
Internationalisation??
In-The-Money Option??
Intrinsic Value??
Inverted Market??
Investment Asset??
Investment Grade??
Investment Trust??
Iron Butterfly??
Irredeemable??
ISDA??
Issue by Prospectus??
Issuer??
Issuer Warrant??
Issuing??
Joint Stock??
Junk Bond??
Kappa??
Ladder Option??
Lag??
Lamda??
LCE??
LDC??
Lead Manager??
LEAPS??
Leasing??
Letter of Credit??
Leverage??
Liability??
LIBID??
LIBOR??
LIBOR Curve??
LIBOR-In-Arrears Swap??
Life Assurance??
Life Insurance??
LIFFE??
LIMEAN??
Limit Move??
Limit Order??
Liquidity??
Liquidity Preference Theory??
Liquidity Premium??
Liquidity Ratio??
Liquidity Risk??
Liquidity Theory??
Lloyds of London??
LME??
Loan??
Local Currency??
Local Market Products??
Locals??
London Clearing House??
Long??
Long Bond??
Long Hedge??
Long Only Fund??
Long Position??
Long Protection??
Long Short Fund??
Lookback Option??
LORO??
LYON??
Maintenance Margin??
Making a Market??
Managing Agent??
Mandatory Liquid Asset??
Margin??
Margin Call??
Mark to Market??
Market Maker??
Market Model??
Market Neutral Portfolio??
Market Segmentation Theory??
Matador Bond??
Maturity??
Maturity Date??
Mean Reversion??
Medium-Term Notes??
Merchant Banks??
Minimum Lending Rate??
Modified Duration??
Money Broker??
Money Market??
Money-at-Call??
Monte Carlo Simulation??
Mortgage Backed Securities??
Multiple Option Facility??
Municipal Bonds??
Mutual??
Mutual Funds??
Naked Position??
NASDAQ??
National Debt??
New Issue??
NIF??
NMS??
No Arbitrage Assumption??
Noise Trader??
Non-Callable Bond??
Nonsystematic Risk??
Normal Backwardation??
Normal Market??
Notional??
Notional Principle??
NPV??
Numerical Procedure??
Obligor??
Off The Run??
Offer for Sale??
Offer Price??
Offer Rate??
On The Run??
OPEC??
Open Cry??
Open Interest??
Open Outcry??
Option??
Option Class??
Option Dated Forward Rate??
Option Series??
Options??
Order Book??
Order Book Official??
Ordinary Share??
Original Issue Discount??
Out-Of-The-Money Option??
Outright??
Over The Counter??
Overfunding??
Overnight??
Package??
PAR??
Par Frequency??
Par Value??
Par Yield??
Parallel Shift??
Partially Unwound??
Passive??
Path-Dependent Option??
Payoff??
PE Ratio??
Pension Funds??
Perpetual??
Perpetuity??
Physical??
PIBOR??
PIK??
Placing??
Plain Vanilla??
Portfolio Immunization??
Portfolio Insurance??
Position Limit??
PPP??
Preference Share??
Premia??
Premium Bond??
Prepayment Function??
Pre-Refunded??
Primary Market??
Prime Broker??
Principal??
Principal Only??
Private Banking??
Privatisation??
Program Trading??
Promissory Note??
Prospective Dividend??
Protective Put??
PSBR??
Purchasing Power Parity??
Put Bonds??
Put Option??
Put-Call Parity??
Puttable Bond??
Puttable Swap??
Quanto??
RAFT??
Rainbow Option??
Range-Forward Contract??
Rating Agency??
Real Interest Rate??
Rebalancing??
Redeem??
Redeemable??
Redemption??
Redemption Date??
Redemption Yield??
Registered??
Repayment Mortgage??
Repo??
Repo Rate??
Repurchase Agreement??
Reset Date??
Residual Risk??
Retained Earnings??
Reversion Level??
Revolver Bond??
Revolving Credit??
Rho??
Rights Issue??
Risk??
Risk Free Rate??
Risk Management??
Risk Neutral Valuation??
Risk Neutral World??
Risk Premium??
Risk Weighted Assets??
Roll Back??
Rolling Over??
Rolling Settlement??
Rollover??
RORAC??
RUF??
Running Yield??
SAEF??
Sale By Tender??
Samurai Bonds??
Savings Ratio??
Scalper??
Scenario Analysis??
Scholes-Merton??
Scrip Issue??
SEAQ??
SEATS??
Secondary Markets??
Secured Bond??
Securities and Exchange Commission??
Securitisation??
Series??
SETS??
Settlement Date??
Settlement Day??
Settlement Price??
Shares??
Short??
Short Cover??
Short Hedge??
Short Position??
Short Rate??
Short Selling??
Short Squeeze??
Shout Option??
Sight Bill??
Sinking Fund??
Soft Commodities??
Soft Currencies??
Solvent??
Special Purpose Vehicle??
Specialist??
Split??
Spot??
Spot Interest Rate??
Spot Price??
Spot Volatilities??
Spread??
Spread Trade??
Spread Transaction??
Stag??
Static Hedge??
Step-Up Swap??
Stochastic Variable??
Stock??
Stock Borrowing??
Stock Dividend??
Stock Index??
Stock Index Future??
Stock Index Option??
Stock Lending??
Stock Option??
Stock Split??
Stocks??
Stop-Loss Order??
Storage Costs??
Straddle??
Strangle??
Strap??
Stress Testing??
Strike Price??
Strip??
Stripped Bonds??
Strips??
Structured Products??
Subordinate Debt??
Subpoenas??
Superdot??
Swap??
Swap Rate??
Swaps??
SwapsWire??
Swaption??
SWIFT??
Swing Option??
Syndicate??
Synthetic Bond??
Synthetic CDO??
Synthetic Option??
Systematic Risk??
Take-And-Pay Option??
TALISMAN??
Tap Stock??
Tender??
Term Sheet??
Term Structure of Interest Rates??
Terminal Value??
Theta??
Ticks??
Tier One Capital??
Tier One Equity??
Tier Two Capital??
Time Decay??
Time Value??
Tombstone??
TOPIC??
Total Return Swap??
Touch Prices??
Trade Bill??
Trade Capture??
Trade Date??
Trade Flow??
Trade Life Cycle??
Traded Option??
TradePoint??
Tranche??
Tranchette??
Transaction Costs??
Treasury Bill??
Treasury Bond??
Treasury Bond Future??
Treasury Note??
Treasury Note Future??
Tree??
Trinomial Tree??
Undated??
Underlying Variable??
Unit Trust??
Unsecured Bond??
Unsettled Cash??
Unsystematic Risk??
Unwind??
Up and In Option??
Up and Out Option??
USM??
Value at Risk??
Vanilla??
Vanilla Swap??
Variance Rate??
Variance-Covariance Matrix??
Variation Margin??
Vega??
Vega Neutral Portfoilo??
Venture Capital??
Vix Index??
Volatility??
Volatility Matrix??
Volatility Skew??
Volatility Smile??
Volatility Swap??
Volatility Term Structure??
VRN??
WAC??
Warrant??
Weighted Average Cost??
White Knight??
White Squire??
Wholesale Money??
Wild Card Play??
Writing an Option??
XD Dividend??
XR??
Yankee Bond??
Yard??
Yield??
Yield Curve??
Yield Curve Modelling??
Yield to Maturity??
Zero Coupon Bond??
Zero Coupon Interest Rate??
Zero Coupon Yield Curve??
Zero Rate??
Abandon Option
An option holder chooses not to exercise their option
Absolute Risk
The volatility of total returns
Acceptance
Short-term debt instruments, drawn on a bank for future payment
Acceptance House
Guarantees payment of trade bills used to finance trade deals and goods in shipment
Accepting
Signing a Bill of Exchange signifying an agreement to pay. Subsequent or alternative signature by a bank virtually guarantees payment.
Account
??
Accreted Value
??
Accreting Swap
A swap in which the principal increases in each time period.
Accrual Swap
An interest rate swap where interest on one side accrues only when a certain condition is met.
Accrued Interest
Interest that has been earned but not yet paid
Actuary
A statistician who calculates risk
Administrator
An Administrator is responsible for ensuring the efficient day-to-day operation of a fund including the accounting.
Alpha
A measure of performance on a risk adjusted basis.
Alternative Investment Market
A market dedicated to smaller companies.
Alternative Minimum Tax
??
American Depository Receipt
The form in which foreign shares can be traded in the US without a formal listing.
American Option
An option that can be exercises at any time during its life.
Amortisation
Repayment of the principal on a loan or bond installments over a period of time.
Amortising
??
Amortising Swap
A swap where the notional principal decreases in a predetermined way as time passes.
Annual Percentage Rate
Used to describe the true cost of the money borrowed on mortgages, loans and credit cards.
Annual Yield
??
Annuity
Something that pays regular cash flows at fixed periods over a given period of time.
APACS
Controlling cheque clearing, BACS and CHAPS in the UK
Arbitrage
Taking advantage of an anomaly in prices or rates in different markets.
Arbitrageur
A person who engages in arbitrage opportunities.
Article 65
Article for the Japanese Financial Code - prevents commercial banks from engaging in some investment banking
Asian Option
An option with a payoff dependent on the average price of an underlying asset during a specified period.
Ask Price
The price that a dealer is offering to sell a security.
Ask Rate
Offer Rate
Asset Backed Securities
??
Asset Pricing
??
Asset-Or-Nothing Call Option
An option that provides a payoff equal to the asset price if the asset price is above the strike price and zero otherwise.
Asset-Or-Nothing Put Option
An option that provides a payoff equal to the asset price if the asset price is below the strike price and zero otherwise.
Assets
The side of the balance sheet dealing with lending
Assurance
The business of life insurance and pensions
As-You-Like-It Option
Chooser Option
At-Best Order
An order to a broker to buy and or sell a contract at the best price available.
At-The-Money Option
An option in which the strike price equals the price of the underlying asset.
Auction Market Preferred Stock
??
Audit
Inspection of a companys books by independent accountants
Automated Clearing House
??
Automated Pit Trading
A computerised trading system used at the LIFFE in addition to open cry
Automatic Exercise
When the clearing house automatically exercises in-the-money options at expiry.
Average-Price Call Option
An option giving a payoff equal to the greater of zero and the amount by which the average price of the asset exceeds the strike price.
Average-Price Put Option
An option giving a payoff equal to the greater of zero and the amount by which the strike price axceeds the average price of the asset.
Average-Strike Option
An option that provides a payoff dependent on the difference between the final asset price and the average asset price.
Back Office
Accounting and Settlements
Back-Testing
Testing a value-at-risk or other model using historic data.
Backwardation
When the spot or near term price of a commodity is higher than the forward rate.
Backwards Induction
A procedure for working from the end of a tree to its neginning in order to value an option.
Bank Bill
A Bill of Exchange accepted by a bank on the central bank's "eligible" list. The central bank itself would rediscount a bill of this type. Also called an Eligible Bill
Bankers Acceptance
Bills of exchange acceppted by large banks
Bankers Automated Clearing Services
??
Barrier Option
An option whose payoff depends on whether the path of the underlying asset has reached a barrier (i.e. a certain predetermined level).
Base Currency
??
Base Rate
??
Basis
The difference between the spot price and the futures price of the commodity.
Basis Point
One hundredth of a percent (0.01%)
Basis Risk
When relationships between products used to hedge each other change or break down
Basis Swap
Swap where cash flows determined by one floating reference rate are exchanged for cash flows determined by another floating reference rate.
Basket Option
An option that provides a payoff dependent on the value of a portfolio of assets.
Bear
A pessimist - selling securities in the belief of a falling stock and bond market, hence a "Bear" market
Bear Market
A falling market
Bear Spread
A short position in a put option with a strike price X1 combined with a long position in a put option with strike price X2 where X2 > X1. (A bear spread can also be created with call options).
Bearer Bond
A bond payable to whoever is in possession - that is no central register
Bed and Breakfast
Selling shares one day and buying them back the next - at the end of the tax year to maximise Capital Gains Tax allowance or claim losses against profits
Bermudan Option
An option that can be exercides on specified dates during its life.
Beta
A measure of systematic risk of an asset.
Bid Price
The price that a dealer is prepared to pay for an asset.
Bid Rate
Rate of interest offered for deposits in banking. Generally the dealer's buying price for equities, bonds, foreign exchange etc
Bid-Ask Spread
The amount by which the ask price exceeds the bid.
Bid-Offer Spread
same as Bid-Ask Spread
Big Bang
Deregulation of the UK Stock Market 27 October 1986. New regulation and an automated price quotation system. The day when minimum commissions were abolished
Bill
A short-term (3 months or so) instrument which pays interest to the holder and can be traded. Some bills do not pay interest but are issued at a discount to their face value.
Bill of Exchange
A signed promise to pay by a receiver of goods or services and kept by the supplier.
Binary Option
Option with discontinuous payoff; for example a cash-or-nothing option or an asset-or-nothing option.
Binomial Model
A model where the price of an asset is monitored over successive short periods of time. In each short period of time it is assumed that only two price movements are possible.
Binomial Tree
A tree that represents how an asset price can evolve under the binomial model.
Blacks Approximation
An approximate procedure developed by Fischer Black for valuing a call option on a dividend paying stock.
Blacks Model
An extension of the Black Scholes model for valuing European Options on futures contracts.
Black-Scholes Model
The original European Stock Option pricing model written by Black and Schole in 1972
Blue Chip
Large established companies. The most highly regarded shares.
Board Washing
The individual who handles limit orders in some exchanges. The board broker makes information on outstanding limit orders available to other traders.
BOBL
Short name for the short-term German government bond contract on the DTB
Bond
An instrument that pays a fixed amount of interest to the holder.
Bond Factor
??
Bond Ladder
??
Bond Option
An option where a bond is the underlying asset.
Bond Provisions
??
Bond Stripping
??
Bond Washing
Selling a bond prior to the ex dividend date to take a capital gain instead of receiving income.
Bonos
Spanish Government Bonds
Bonus Issue
A free issue of shares to existing shareholders
Bonus Value
??
Book Entry
??
Book Value
The value of an asset as entered in a company's balance sheet
Bootstrap Method
A procedure for calculating the zero-coupon yield curver from market data.
Boston Option
see Deferred payment option
Break Forward
see Deferred payment option
Broker
An individual (or firm) that acts as an intermediary putting buyers and sellers together for a brokerage fee.
Building Society
Institutions whose primary function is to accept the savings of small investors and channel them to house buyers in return for the security of a mortgage on the property.
Bull
An optimist, buying securities in the belief of a rising (stock and bond) market, hence a bull market
Bull Market
A rising market
Bull Spread
Buying a call option (a long position in a call) with a strike X1 combined with selling a call (short position in a call) with a strike price X2 where X2>X1 (a bull spread can also be created using put options).
Bullet Repayment
The whole of a bond or bank loan is repaid at maturity (instead of staged payments in the last few years)
Bundesbank
The German Central Bank
Butterfly Spread
A position that is created by taking a long position in a call with strike price X1, a long position in a call with strike price X3 and a short position in two calls with strike price X2 where X3 > X2 > X1 and X2 = 0.5(X1 + X2).
Cable
Shorthand for dollar/sterling rate
Calendar Spread
A position that is created by taking a long position in a call option that matures at one time and a short position in a similar call option that matures at a different time.
Call Date
??
Call Money
Money lent by banks to other banks or discount houses which can be recalled at noon each day
Call Option
An option to buy an asset at a certain price on a certain date some time in the future.
Call Protection
??
Call Risk
??
Call Schedule
??
Callable Bond
The issuer has the right to redeem the bond at a specified earlier date than the one orginally fixed as the final maturity.
Callable Credit Products
??
Cancelable Swap
Swaps that can be cancelled by one side of prespecified dates.
Cap
An agreement with a counterparty which sets an upper limit to interest rates for the cap buyer for a stated time period.
Cap Rate
The rate determining payoffs in an interest rate cap
Capital Adequacy
The need to maintain adequate capital to cover counterparty risk and position risk
Capital Asset Pricing Model
A model relating the expected return on an asset to its beta.
Capital Growth Bond
Issue price at par (100%) with redemption at a multiple of that amount.
Capital Markets
The market for medium and long term securities
Capital Ratio
The ratio of a banks primary capital to a weighted value of assets
Capitalisation
Market capitalisation of a company is the number of shares multiplied by the current price
Capitalisation Issue
An issue where funds from a company's reserves are converted into shares and offered free of charge to shareholders.
Caplet
One component on an interest rate cap
Cash Flow Mapping
A procedure for representing an instrument as a portfolio of zero-coupon bonds for the purpose of calculating value at risk.
Cash Ratio
The proportion of a bank's liabilities which it considers prudent to keep in the form of cash.
Cash Settlement
Where the product is settled at expiry, based on the differential between the fixed/guaranteed price and the underlying instrument. Procedure for settling a futures contract in cash rather than by delivering the underlying asset.
Cash-Or-Nothing Call Option
An option that provides a fixed predetermined payoff if the final asset price is above the strike price and zero otherwise.
Cash-Or-Nothing Put Option
An option that provides a fixed predetermined payoff if the final asset price is below the strike price and zero otherwise.
CAT Bond
Bond where the interest, and possibly, the principal paid are reduced if a particular category of "catastrophic" insurance claims exceed a certain amount.
CDO
A security based on a mix of debt and credit risk. Different laters often referred to as tranches (or slices) each having different risk and maturities.
Central Counterparty Model
Set up by the Stock Exchange to remove credit risk when buying and selling.
Certificate of Deposit
A tradeable deposit issued by banks and building societies.
Certificates of Participation
A type of municipal bond that are often used to finance capital improvement projects or equipment.
CGT
Capital Gains Tax
CHAPS
Clearing House Automated Payments System - for electronic clearing of payments the same day (UK)
Cheapest-To-Deliver Bond
The bond that is cheapest to deliver in the Chicago Board of Trade bond futures contract.
Chinese Wall
A theoretical barrier between different sections of a firm to avoid fraud (i.e. conflicts of interest or insider dealing). One part of the firm may not pass sensitive information to another if it is against a client's interest.
CHIPS
Clearing House Interbank Payments - electronic bank clearing in New York
Chooser Option
An option where the holder has the right to choose whether it is call or a put at some point during its life.
CIRCUS
Combined Interest Rate and Currency Swap
Clean Price
Price of a bond not including the accrued interest element. This is the quoted price. The cash price paid for the bond (or dirty price) is calculated by adding the accrued interest to the clean price.
Clearing Bank
Banks which are part of the clearing system which significantly reduces the number of interbank payments.
Clearing House
A firm that guarantees the performance of the parties in an exchange-traded derivatives transaction. Central Body guaranteeing contracts in a traded options/futures market. Also known as clearing corporation.
Clearing Margin
A margin posted by a member of a clearing house.
CLO
??
Closing Out
For futures market - taking the opposite contract for example having previously bought 100 tons of cocoa for June delivery, the buyer now sells 100 tons for the same delivery (or vice-versa)
CME
Chicago Mercantile Exchange
CMO
Collaterized Mortgage Obligation - A mortgage backed security where investors are divided into classes and there are rules for determining how principal repayments are channeled to the classes.
Collar
see Interest Rate Collar
Collateral
??
Collaterised
??
Combination
A position involving both calls and puts on the same underlying asset.
Commercial Banking
The classic banking business of taking deposits and lending money, either retail or wholesale
Commerical Paper
An unsecured IOU issued by large companies and banks.
Commission Brokers
Individuals who execute trades for other people and charge a commission for doing so.
Commodity Swap
A swap where cash flows depend on the price of a commodity.
Complex Power Duals
??
Compound Option
An option on an option. The holder (buyer) has an option to purchase another option on a pre-set date at a pre-agreed premium.
Compounding Frequency
This defines how an interest rate is measured.
Compounding Swap
Swap where interest compounds instead of being paid.
Concert Party
A group acting together (secretly) in a takeover situation for example three people each buy 2.9% of shares to avoid no longer being able to hide behind nominee status.
Confirmation
Contract confirming verbal agreement between two parties to a trade in the over-the-counter market.
Consolidation
Reorganising share holdings so that, for example 10 shares at 10p are replaced by a one £1 nominal
Constant Maturity Swap
A swap where a swap rate is exchanged for eother a fixed rate or a floating rate on each payment date.
Constant Maturity Treasury Swap
A swap where the yield on a Treasury Bond is exchanged for either fixed rate or floating rate on each payment date.
Consumption Asset
An asset held for consumption rather than investment
Contango
A situation where the futures price is above the expected future spot price.
Continuous Compounding
A way of quoting interest rates. It is the limit as the assumed compounding interval is made smaller and smaller.
Contract for Difference
A derivative product to trade the price differential over an indefinite time period.
Contract Size
The unit of trading on a derivatives contract.
Control Variate Technique
A technique that can sometimes be used for improving the accuracy of a numerical procedure.
Convenience Yield
A measure of the benefits from ownership of an asset that are not obtained by the holder of a long futures contract on the asset.
Conversion Factor
A factor used to determine the number of bonds that must be delivered in the bond futures market.
Convertible
A convertible bond may be converted later into equity, some other bond or even a commodity
Convertible Bond
A corporate bond that can be converted into a predetermined amount of the company's equity at certain times during its life.
Convertible Rate FRN
An issue which carries the option to convert either from an initial floating rate note into a fixed rate bond or from a fixed rate bond into a floating rate note.
Convexity
A measure of the curvature in the relationship between bond prices and bond yields.
Convexity Adjustment
An overworked term. It can refer to the adjustment necessary to convert a futures interest rate to a forward interest rate.
Corporate Bond
??
Corporate Finance
The department of an investment bank dealing with takeovers, mergers and strategic advice to companies
Cost of Carry
The storage costs plus the cost of financing as asset minus the income earned on the asset.
CounterParty
The opposite side in a financial transaction.
CounterParty Risk
The risk involved if a counterparty fails to settle
Coupon
Interest payment made on a bond.
Coupon Rate
??
Coupon Stripping
Detaching the coupons from a bond and selling the coupons and the principal as individual zero coupon bonds
Coupons
Issued with bearer bonds to enable the holder to claim the interest.
Cover
An abbreviation of "short cover".
Covered Bond
Is a bond issued by a financial institution that remains on its balance sheet.
Covered Call
A short position in a call option on an asset combined with a long position in the asset.
Covered Warrant
A warrant issued by a party other than the originator or issuer of the underlying asset
Covered Writing
Where an option is sold against an existing position.
Credit Default Swap
An instrument that gives the holder the right to dell a bond for its face value in the event of a default by the issuer.
Credit Derivative
A derivative whose payoff depends on the creditworthiness of the one or more entities
Credit Enhancement
??
Credit Ratings
A measure of the creditworthiness of a bond issue.
Credit Risk
The risk that a loss will be experienced because of the default by the counterparty in a derivatives transaction.
Credit Spread
The interest rate spread between 2 debt issues of similar duration, maturity etc.
Credit Spread Option
Option whose payoff depends on the spread between the yields earned on two assets.
Credit Valuation Adjustment
This is the market value of the counterparty credit-risk.
CREST
The new UK Electronic settlement registering system introduced in July 1996.
CTD
Cheapest To Deliver bond
Cum Dividend
Means the buyer will get the recently announced dividend.
Cumulative
Applied to a Preference Share - if dividend is missed it is still owed to the holder.
Currency Risk
The risk of losses resulting from movements in currency exchange rates.
Currency Swap
??
Currency Warrants
??
Current Yield
??
CUSIP
??
Custodian
??
Cyclical Stock
The share prices of these companies move dramatically (up and down) relative to the economy.
Cylinder
??
Dated Date
??
DAX
??
Day Count
??
Day Trade
A position opened and closed on the same day.
Dealing Spread
??
Debenture
??
Debt Convertible
??
Deep Discount Bond
This is a bond with issue price significanly below maturity price, due to lack of coupon or a coupon below the market rate.
Default
??
Defensive Stock
The share prices of these companies does not move dramatically (up and down) relative to the economy.
Deferred Payment Option
??
Deferred Swap
??
Delivery
??
Delta
??
Delta Hedging
??
Delta Neutral Portfolio
??
Depository Receipt
Certificates which represent ownership of a given number of company's shares which can be listed and traded separately from the underlying shares (eg ADRs and GDR)
Depreciation
??
Derivatives
??
Devaluation
??
Diagonal Spread
??
Differential Swap
??
Dilution
??
Dirty Price
??
Discount
The margin by which the purchase price is cheaper than the redemption price
Discount Bond
??
Discount Broker
??
Discount House
??
Discount Instrument
??
Discount Margin
??
Discount Rate
??
Discounting
??
Disintermediation
??
Dividend
??
Dividend Paying Stock
??
Dividend Yield
??
Down-and-In Option
??
Down-and-Out Option
??
Downside Risk
??
Duration
??
Duration Matching
??
Dynamic Hedging
??
Early Exercise
??
Earnings Yield
??
EBITDA
??
ECGD
??
ECU
??
EDR
??
Efficient Market Theory
??
EFTPOS
??
Eligible Bill
??
Embedded Option
??
Empirical Research
??
EMS
??
EMU
??
Endowment Mortgage
??
EPS
??
Equity
??
Equity Collar
??
Equity Convertible
??
Equity Swap
??
ERM
??
ETF
??
Eurex
??
EURIBOR
??
Euro
??
EuroBond
??
EuroClear
??
EuroCurrencies
??
EuroCurrency
??
EuroDollar
??
EuroDollar Futures Contract
??
EuroDollar Interest Rate
??
EuroMarket
??
EuroNext
??
EuroNote
??
European Option
??
EWMA
??
Exchange Option
??
Exchange Rate
??
Exchange Traded
??
Ex-Dividend
??
Ex-Dividend Date
??
Executive Stock Option
??
Exercise Price
??
Exotic Option
??
Exotics
??
Expectations Theory
??
Expected Value of a Variable
??
Expiry Date
??
Exponential Weightings
??
Exponentially Weighted Moving Average Model
??
Extendable Bond
??
Extendable Swap
??
Factoring
??
Fair Value
??
FASB
??
Federal Reserve
??
FedWire
??
Fill-or-Kill
??
Finance Houses
??
Financial Intermediary
??
First Coupon Date
??
FIX
??
Fixed Commissions
??
Fixed Exchange Rates
??
Flat Volatility
??
Flat Yield
??
Flex Option
??
Flip Flop FRN
??
Floating Exchange Rates
??
Floating Rate
??
Floating Rate Note
??
Floor
??
Floor Rate
??
Floor-Ceiling Agreement
??
Floored Floaters
??
Floorlet
??
Foreign Bond
??
Foreign Currency Option
??
Forfaiting
??
Forward Contract
??
Forward Exchange Rate
??
Forward Market
??
Forward Price
??
Forward Rate
??
Forward Rate Agreement
??
Forward Start Option
??
Forward Swap
??
Forward-Forward Agreement
??
FOX
??
Fraud
??
Freddie Mac
??
FSA
??
FTSE Index
??
Fungible
??
Futures
??
Futures Contract
??
Futures Option
??
Futures Price
??
Gamma
??
Gamma Neutral Portfolio
??
Gearing
??
Gearing Ratio
??
General Obligation Bonds
??
Gilt Edged Security
??
Gilt Warrants
??
Gilts
??
Global Bond
??
Global Depository Receipt
??
Globalisation
??
GLOBEX
??
Golden Hello
??
Goodwill
??
Greeks
??
Gross Redemption Yield
??
Guaranteed Bond
??
Hard Currencies
??
Harrison and Kreps
??
Hedge
??
Hedge Fund
??
Hedge Ratio
??
Hedger
??
Hedging
??
High Yield Bonds
??
Historic Volatility
??
Historical Dividend
??
Historical Simulation
??
Holiday Calendar
??
Hybrid Products
??
IDB
??
IMPA
??
Implied Distribution
??
Implied Volatility
??
Implied Volatility Trees
??
Index Amortizing Swap
??
Index Arbitrage
??
Index Futures
??
Index Option
??
Indexed Principal Swap
??
Indices
??
Ineligible Bank Bills
??
Inflation
??
Initial Margin
??
Initial Public Offering
??
Insider Dealing
??
Insolvent
??
Insurance
??
Insured Bonds
??
InterBank Market
??
Inter-dealer Broker
??
Interest
??
Interest Only
??
Interest Rate Cap
??
Interest Rate Collar
??
Interest Rate Derivative
??
Interest Rate Floor
??
Interest Rate Option
??
Interest Rate Swap
??
Interest Yield
??
International Bond
??
International Monetary Fund
??
Internationalisation
??
In-The-Money Option
??
Intrinsic Value
??
Inverted Market
??
Investment Asset
??
Investment Grade
??
Investment Trust
??
Iron Butterfly
??
Irredeemable
??
ISDA
??
Issue by Prospectus
??
Issuer
??
Issuer Warrant
??
Issuing
??
Joint Stock
??
Junk Bond
??
Kappa
??
Ladder Option
??
Lag
??
Lamda
??
LCE
??
LDC
??
Lead Manager
??
LEAPS
??
Leasing
??
Letter of Credit
??
Leverage
??
Liability
??
LIBID
??
LIBOR
??
LIBOR Curve
??
LIBOR-In-Arrears Swap
??
Life Assurance
??
Life Insurance
??
LIFFE
??
LIMEAN
??
Limit Move
??
Limit Order
??
Liquidity
??
Liquidity Preference Theory
??
Liquidity Premium
??
Liquidity Ratio
??
Liquidity Risk
??
Liquidity Theory
??
Lloyds of London
??
LME
??
Loan
??
Local Currency
??
Local Market Products
??
Locals
??
London Clearing House
??
Long
??
Long Bond
??
Long Hedge
??
Long Only Fund
??
Long Position
??
Long Protection
??
Long Short Fund
??
Lookback Option
??
LORO
??
LYON
??
Maintenance Margin
??
Making a Market
??
Managing Agent
??
Mandatory Liquid Asset
??
Margin
??
Margin Call
??
Mark to Market
??
Market Maker
??
Market Model
??
Market Neutral Portfolio
??
Market Segmentation Theory
??
Matador Bond
??
Maturity
??
Maturity Date
??
Mean Reversion
??
Medium-Term Notes
??
Merchant Banks
??
Minimum Lending Rate
??
Modified Duration
??
Money Broker
??
Money Market
??
Money-at-Call
??
Monte Carlo Simulation
??
Mortgage Backed Securities
??
Multiple Option Facility
??
Municipal Bonds
??
Mutual
??
Mutual Funds
??
Naked Position
??
NASDAQ
??
National Debt
??
New Issue
??
NIF
??
NMS
??
No Arbitrage Assumption
??
Noise Trader
??
Non-Callable Bond
??
Nonsystematic Risk
??
Normal Backwardation
??
Normal Market
??
Notional
??
Notional Principle
??
NPV
??
Numerical Procedure
??
Obligor
??
Off The Run
??
Offer for Sale
??
Offer Price
??
Offer Rate
??
On The Run
??
OPEC
??
Open Cry
??
Open Interest
??
Open Outcry
??
Option
??
Option Class
??
Option Dated Forward Rate
??
Option Series
??
Options
??
Order Book
??
Order Book Official
??
Ordinary Share
??
Original Issue Discount
??
Out-Of-The-Money Option
??
Outright
??
Over The Counter
??
Overfunding
??
Overnight
??
Package
??
PAR
??
Par Frequency
??
Par Value
??
Par Yield
??
Parallel Shift
??
Partially Unwound
??
Passive
??
Path-Dependent Option
??
Payoff
??
PE Ratio
??
Pension Funds
??
Perpetual
??
Perpetuity
??
Physical
??
PIBOR
??
PIK
??
Placing
??
Plain Vanilla
??
Portfolio Immunization
??
Portfolio Insurance
??
Position Limit
??
PPP
??
Preference Share
??
Premia
??
Premium Bond
??
Prepayment Function
??
Pre-Refunded
??
Primary Market
??
Prime Broker
??
Principal
??
Principal Only
??
Private Banking
??
Privatisation
??
Program Trading
??
Promissory Note
??
Prospective Dividend
??
Protective Put
??
PSBR
??
Purchasing Power Parity
??
Put Bonds
??
Put Option
??
Put-Call Parity
??
Puttable Bond
??
Puttable Swap
??
Quanto
??
RAFT
??
Rainbow Option
??
Range-Forward Contract
??
Rating Agency
??
Real Interest Rate
??
Rebalancing
??
Redeem
??
Redeemable
??
Redemption
??
Redemption Date
??
Redemption Yield
??
Registered
??
Repayment Mortgage
??
Repo
??
Repo Rate
??
Repurchase Agreement
??
Reset Date
??
Residual Risk
??
Retained Earnings
??
Reversion Level
??
Revolver Bond
??
Revolving Credit
??
Rho
??
Rights Issue
??
Risk
??
Risk Free Rate
??
Risk Management
??
Risk Neutral Valuation
??
Risk Neutral World
??
Risk Premium
??
Risk Weighted Assets
??
Roll Back
??
Rolling Over
??
Rolling Settlement
??
Rollover
??
RORAC
??
RUF
??
Running Yield
??
SAEF
??
Sale By Tender
??
Samurai Bonds
??
Savings Ratio
??
Scalper
??
Scenario Analysis
??
Scholes-Merton
??
Scrip Issue
??
SEAQ
??
SEATS
??
Secondary Markets
??
Secured Bond
??
Securities and Exchange Commission
??
Securitisation
??
Series
??
SETS
??
Settlement Date
??
Settlement Day
??
Settlement Price
??
Shares
??
Short
??
Short Cover
??
Short Hedge
??
Short Position
??
Short Rate
??
Short Selling
??
Short Squeeze
??
Shout Option
??
Sight Bill
??
Sinking Fund
??
Soft Commodities
??
Soft Currencies
??
Solvent
??
Special Purpose Vehicle
??
Specialist
??
Split
??
Spot
??
Spot Interest Rate
??
Spot Price
??
Spot Volatilities
??
Spread
??
Spread Trade
??
Spread Transaction
??
Stag
??
Static Hedge
??
Step-Up Swap
??
Stochastic Variable
??
Stock
??
Stock Borrowing
??
Stock Dividend
??
Stock Index
??
Stock Index Future
??
Stock Index Option
??
Stock Lending
??
Stock Option
??
Stock Split
??
Stocks
??
Stop-Loss Order
??
Storage Costs
??
Straddle
??
Strangle
??
Strap
??
Stress Testing
??
Strike Price
??
Strip
??
Stripped Bonds
??
Strips
??
Structured Products
??
Subordinate Debt
??
Subpoenas
??
Superdot
??
Swap
??
Swap Rate
??
Swaps
??
SwapsWire
??
Swaption
??
SWIFT
??
Swing Option
??
Syndicate
??
Synthetic Bond
??
Synthetic CDO
??
Synthetic Option
??
Systematic Risk
??
Take-And-Pay Option
??
TALISMAN
??
Tap Stock
??
Tender
??
Term Sheet
??
Term Structure of Interest Rates
??
Terminal Value
??
Theta
??
Ticks
??
Tier One Capital
??
Tier One Equity
??
Tier Two Capital
??
Time Decay
??
Time Value
??
Tombstone
??
TOPIC
??
Total Return Swap
??
Touch Prices
??
Trade Bill
??
Trade Capture
??
Trade Date
??
Trade Flow
??
Trade Life Cycle
??
Traded Option
??
TradePoint
??
Tranche
??
Tranchette
??
Transaction Costs
??
Treasury Bill
??
Treasury Bond
??
Treasury Bond Future
??
Treasury Note
??
Treasury Note Future
??
Tree
??
Trinomial Tree
??
Undated
??
Underlying Variable
??
Unit Trust
??
Unsecured Bond
??
Unsettled Cash
??
Unsystematic Risk
??
Unwind
??
Up and In Option
??
Up and Out Option
??
USM
??
Value at Risk
??
Vanilla
??
Vanilla Swap
??
Variance Rate
??
Variance-Covariance Matrix
??
Variation Margin
??
Vega
??
Vega Neutral Portfoilo
??
Venture Capital
??
Vix Index
??
Volatility
??
Volatility Matrix
??
Volatility Skew
??
Volatility Smile
??
Volatility Swap
??
Volatility Term Structure
??
VRN
??
WAC
??
Warrant
??
Weighted Average Cost
??
White Knight
??
White Squire
??
Wholesale Money
??
Wild Card Play
??
Writing an Option
??
XD Dividend
??
XR
??
Yankee Bond
??
Yard
??
Yield
??
Yield Curve
??
Yield Curve Modelling
??
Yield to Maturity
??
Zero Coupon Bond
??
Zero Coupon Interest Rate
??
Zero Coupon Yield Curve
??
Zero Rate
??

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