Alphabetical - F

FactoringBuying trade debts on a regular basis to assist cash flow - usually done by subsidiaries of banks.
Fair ValueThis is calculated as the level where the contract should trade taking into account the cost of carry.
FASBFinancial Accounting Standards Board.
Federal ReserveThe US monetary authority which plays a role similar to that of the Bank of England.
FedWireElectronic payments system between Federal Reserve banks in the US
Fill-or-KillAn order on an exchange which is either executed in its entirety at the stipulated price or cancelled.
Finance HousesInstitutions which specialise in funding hire-purchase agreements
Financial IntermediaryA bank or other financial institution that facilitates the flow of funds between different entities in the economy.
First Coupon Date??
FIXElectronic Communication Protocol
Fixed Commissions??
Fixed Exchange RatesCurrencies with set values against each other which vary only in times of crisis when one or more currencies are revalued or devalued.
Flat VolatilityThe name given to a volatility used to price a cap when the same volatility is used for each caplet.
Flat YieldThe 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 OptionAn option traded on an exchange with terms that are different from the standard options traded by the exchange.
Flip Flop FRNA 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 RatesCurrencies whose values against each other are set by market forces.
Floating RateA loan with the interest rate varied at agreed intervals, linked to a base rate for example LIBOR
Floating Rate NoteA medium to long term debt obligation with a variable interest rate which is adjusted periodically.
FloorAn agreement with a counterparty which sets an upper limit to interest rates for the cap buyer for a stated time period.
Floor RateThe interest rate in an interest rate floor agreement.
Floor-Ceiling Agreementsee Interest Rate Collar
Floored Floaters??
FloorletOne component of a Floor
Foreign BondA bond issued in a domestic market other than its own.
Foreign Currency OptionAn option on a foreign exchange rate.
ForfaitingRaising money by selling a company's invoices
Forward ContractA contract to buy or sell a commodity or security for future delivery at a price agreed today
Forward Exchange RateThe forward price of one unit of a foreign currency
Forward MarketMarket in which currencies are traded months or years ahead.
Forward PriceThe delivery price in a forward contract that causes the contract to be worth zero.
Forward RateA rate agreed now for a future purchase or sale of a currency.
Forward Rate AgreementAgreement that a certain interest rate will apply to a certain principal amount for a certain time period in the future.
Forward Start OptionAn option designed so that it will be at the money at some point in the future.
Forward Swapsee Deferred Swap
Forward-Forward AgreementArrangement to lend or borrow a set sum at a date in the future for a set period at a set rate.
FOXLondon Futures and Options Exchange (commodities)
Fraud??
Freddie MacFederal National Mortgage Association (FNMA)
FSAFinancial Services Authority
FTSE IndexFinancial Times ?? Index that tracks the share prices of 100 leading company.
FungibleExchangeable - 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.
FuturesInstruments which give the buyer the right to purchase a commodity at a future date
Futures ContractSimilar to forward but not expected to go to delivery as the position will be closed out with the opposite contract.
Futures OptionAn option on a futures contract.
Futures PriceThe 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

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