||The process in which broker/dealers form a syndicate to sell a new issue of securities.
||The risk of price change for an individual stock, commodity, or industry. Anything from an oil discovery to a change in management could affect this sort of risk. Unsystematic risks are reduced or eliminated through diversification of holdings, not by hedging with index futures. Compare with systematic risk.
||A channel of upward price movement.
||Determination of the value of a company`s Stock based on Earnings and The Market value of assets.
||The importance placed on something by an individual. Value is subjective and may change according to the circumstances. Something that may be valued highly at one time may be valued less at another time.
||Value at Risk
||The expected loss from an adverse market movement.
||The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
||Transaction executed for same day settlement; sometimes also referred to as "cash transaction".
||A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
||A security Issue that has no unusual features.
||An expanded allowable price range set during volatile markets.
||Most exchanges set limits on the maximum daily price movement of some of the futures contracts traded on their floors. They also retain the right to expand these limits if the price moves up- or down-limit for one, two, or three trading days in a row. If the limits automatically change after repeated limit moves, they are known as variable limits.
||Variable Price Limit
||A price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.
||During periods of great market volatility or in the case of high-risk accounts, additional margin deposited by a clearing member firm to an exchange.
||Coefficient measuring the sensitivity of an option value to a change in volatility.
||Velocity of Money
||The speed with which money circulates or turnover in the economy. It is calculated as the annual national income: average money stock in the period.
||A transaction generally used by two hedgers who want to exchange futures for cash positions.
||Also known as a price spread, is constructed with options having the same expiration months. This can be done with either calls or puts. See Bear call spread, Bull call spread, Bear put spread, and Bull put spread.
||Buying and selling puts or calls of the same expiration month but different strike prices.
||Usually refers to supplies of a commodity in licensed warehouses. Often includes floats and all other supplies "in sight" in producing areas.