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In finance, a perpetual futures contract, also known as a perpetual swap, is an agreement to non-optionally buy or sell an asset at an unspecified point in the future. . Perpetual futures are cash-settled, and they differ from regular futures in that they lack a pre-specified delivery date and can thus be held indefinitely without the need to roll over contracts as they approach expi
While futures and forward contracts are both contracts to deliver an asset on a future date at a prearranged price, they are different in two main respects: Futures are exchange-traded, while forwards are traded over-the-counter. Thus futures are standardized and face an exchange, while forwards are customized and face a non-exchange counterparty.
In finance, a contract for difference (CFD) is a financial agreement between two parties, commonly referred to as the "buyer" and the "seller."The contract stipulates that the buyer will pay the seller the difference between the current value of an asset and its value at the time the contract was initiated.
Created Date: 8/30/2012 4:52:52 PM
A cliquet option or ratchet option is an exotic option consisting of a series of consecutive forward start options. [1] The first is active immediately. The second becomes active when the first expires, etc.
The Black formula is similar to the Black–Scholes formula for valuing stock options except that the spot price of the underlying is replaced by a discounted futures price F. Suppose there is constant risk-free interest rate r and the futures price F(t) of a particular underlying is log-normal with constant volatility σ.
Perpetual futures; Pin risk; PnL explained; Portfolio insurance; Position (finance) Power reverse dual-currency note; Precious metals streaming; Priority Sector Lending Certificates; Property derivative; Protective option
If short-term interest rates were expected to fall in a contango market, this would narrow the spread between a futures contract and an underlying asset in good supply. . This is because the cost of carry will fall due to the lower interest rate, which in turn results in the difference between the price of the future and the underlying growing smaller (i.e. narrow