neutralising positions — Contracts with offsetting risk exposure. LIFFE … Financial and business terms
Credit default swap — If the reference bond performs without default, the protection buyer pays quarterly payments to the seller until maturity … Wikipedia
Leverage (finance) — In finance, leverage (sometimes referred to as gearing in the United Kingdom) is a general term for any technique to multiply gains and losses.[1] Common ways to attain leverage are borrowing money, buying fixed assets and using derivatives.[2]… … Wikipedia
Close Position — Executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. Closing a long position in a security would entail selling it, while closing a short position in a… … Investment dictionary
Seasonal spread trading — Seasonal spread traders are spread traders that take advantage of seasonal patterns by holding long and short positions in futures contracts simultaneously in the same or a related commodity markets. The spread is the difference between the… … Wikipedia
Fungibles — Goods, securities or instruments that are equivalent and, therefore, interchangeable. In other words, they are goods that consist of many identical parts which can be easily replaced by other, identical goods. If the goods are sold by weight or… … Investment dictionary
Note Against Bond Spread - NOB — A spread within futures contracts created by offsetting positions in 30 year treasury bond futures with positions in 10 year treasury note contracts. Also known as the note over bond spread, the position a futures trader will take depends upon… … Investment dictionary
Cylinder — A term used to describe a transaction, involving two derivatives, where there is no initial cost bourne by the investor when entering into the position. For example, an investor can sell a derivative and use its proceeds to purchase another… … Investment dictionary
Five Against Bond Spread - FAB — A spread in the futures markets created by taking offsetting positions in futures contracts for five year treasury bonds and long term (15 30 year) treasury bonds. A FAB spread is created by either buying a futures contract on five year treasury… … Investment dictionary
Five Against Note Spread - FAN — A spread in the futures markets created by taking offsetting positions in futures contracts for five year treasury notes and ten year treasury bonds. A FAN spread is created by either buying a futures contract for five year treasury notes and… … Investment dictionary
