Alphabetical - D

Dated Date??
DAXAn index of 30 top German shares traded on the Frankfurt exchange.
Day CountA convention used for quoting interest rates.
Day TradeA position opened and closed on the same day.
Dealing SpreadThe difference between a trader's bid and offer price.
DebentureA long-term bond issues by a UK company and secured on fixed assets.
Debt ConvertibleBond which can be converted by an investor into another bond with a different interest rate or maturity
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 OptionAn option where the price paid is deferred until the end of the option's life.
Deferred SwapAn agreement to enter into a swap at some time in the future.
Delivery??
DeltaThe rate of change of the price of a derivative with the price of the underlying asset.
Delta HedgingA hedging scheme that is designed to make the price of a portfolio of derivatives insensitive to small changes in the price of the underlying asset.
Delta Neutral PortfolioA portfolio with a delta of zero so that there is no sensitivity to small changes in the price of the underlying asset.
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)
DepreciationAn accounting term which allows for the run-down in values of a company's assets.
DerivativesAn instrument whose price depends on, or is derived from, the price of another asset.
DevaluationTerm usually applies to currencies, which means simply a one-off loss in value (fall in price) of the currency concerbed.
Diagonal SpreadA position in two calls where both the strike prices and times to maturity are different (this can also be created with put options).
Differential SwapA swap where a floating rate in one currency is exchanged for a floating rate in another currency and both rates are applied to the same principal.
DilutionThe reduction in earnings per share caused by the creation of new shares.
Dirty PriceBond prices including the accrued interest element.
DiscountThe margin by which the purchase price is cheaper than the redemption price
Discount Bondsee Zero-coupon bond
Discount BrokerA broker who offers a no-frills, dealing-only service for a cheap price.
Discount HouseTakes the liquid money of the banking system and uses it to discount bills of exchange but Treasury Bills, etc.
Discount InstrumentAn instrument such as a Treasury Bill that provides no coupon.
Discount Margin??
Discount RateThe annualised dollar return on a Treasury Bill or similar instrument expressed as percentage of the final face value.
DiscountingBuying / Selling a security at less than face value.
DisintermediationDirect market borrowing or lending by companies without going through a bank.
DividendA cash payment made to the owner of a stock (or equity)
Dividend Paying Stock??
Dividend YieldThe annual percentage return on a share price represented by the current dividend - usually gross.
Down-and-In OptionAn option that comes into existence when the price of the underlying asset falls to a certain level.
Down-and-Out OptionAn option that ceases to exist when the price of the underlying asset falls to a certain level.
Downside RiskThe risk of making a loss on a position or an investment.
DurationA measure of the average life of a bond.
Duration MatchingA procedure for matching the durations of assets and liabilitites in a finanical institution.
Dynamic HedgingA procedure for hedging an option position by periodically changing the position held in the underlying assets.
Dated Date
??
DAX
An index of 30 top German shares traded on the Frankfurt exchange.
Day Count
A convention used for quoting interest rates.
Day Trade
A position opened and closed on the same day.
Dealing Spread
The difference between a trader's bid and offer price.
Debenture
A long-term bond issues by a UK company and secured on fixed assets.
Debt Convertible
Bond which can be converted by an investor into another bond with a different interest rate or maturity
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
An option where the price paid is deferred until the end of the option's life.
Deferred Swap
An agreement to enter into a swap at some time in the future.
Delivery
??
Delta
The rate of change of the price of a derivative with the price of the underlying asset.
Delta Hedging
A hedging scheme that is designed to make the price of a portfolio of derivatives insensitive to small changes in the price of the underlying asset.
Delta Neutral Portfolio
A portfolio with a delta of zero so that there is no sensitivity to small changes in the price of the underlying asset.
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
An accounting term which allows for the run-down in values of a company's assets.
Derivatives
An instrument whose price depends on, or is derived from, the price of another asset.
Devaluation
Term usually applies to currencies, which means simply a one-off loss in value (fall in price) of the currency concerbed.
Diagonal Spread
A position in two calls where both the strike prices and times to maturity are different (this can also be created with put options).
Differential Swap
A swap where a floating rate in one currency is exchanged for a floating rate in another currency and both rates are applied to the same principal.
Dilution
The reduction in earnings per share caused by the creation of new shares.
Dirty Price
Bond prices including the accrued interest element.
Discount
The margin by which the purchase price is cheaper than the redemption price
Discount Bond
see Zero-coupon bond
Discount Broker
A broker who offers a no-frills, dealing-only service for a cheap price.
Discount House
Takes the liquid money of the banking system and uses it to discount bills of exchange but Treasury Bills, etc.
Discount Instrument
An instrument such as a Treasury Bill that provides no coupon.
Discount Margin
??
Discount Rate
The annualised dollar return on a Treasury Bill or similar instrument expressed as percentage of the final face value.
Discounting
Buying / Selling a security at less than face value.
Disintermediation
Direct market borrowing or lending by companies without going through a bank.
Dividend
A cash payment made to the owner of a stock (or equity)
Dividend Paying Stock
??
Dividend Yield
The annual percentage return on a share price represented by the current dividend - usually gross.
Down-and-In Option
An option that comes into existence when the price of the underlying asset falls to a certain level.
Down-and-Out Option
An option that ceases to exist when the price of the underlying asset falls to a certain level.
Downside Risk
The risk of making a loss on a position or an investment.
Duration
A measure of the average life of a bond.
Duration Matching
A procedure for matching the durations of assets and liabilitites in a finanical institution.
Dynamic Hedging
A procedure for hedging an option position by periodically changing the position held in the underlying assets.

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