Swaps
Swap, in finance, refers to a derivative product in which the parties to the contract agree to exchange cash flows of each other’s financial instruments. The benefits arising out of a swap contract depend...
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Finance
Finance is the management of money and other valuables, which can be easily converted into cash. Finance is a simple task of providing the necessary funds (money) required by the business of entities like...
Financial market participants
Financial market participants range from banks and other lending institutions to entities at the federal level. In the U.S., the federal government is the largest market participant through it’s varies entities and sponsored agencies....
Clearing house
According to 15 USCS § 78c (23) (A) the term ‘‘clearing agency’’ means any person who acts as an intermediary in making payments or deliveries or both in connection with transactions in securities or...
Securities
The study of stocks and the stock market must necessarily begin with defining what stocks are. Stocks are equity securities, signifying that the owners of such securities have an equity (ownership) position—a “piece of...
Commodity market
Trading of commodities consists of direct physical trading and derivatives trading. Commodities include a range of diverse products. More recently there has been growing sophistication of commodities investments with the introduction of new “exotic”...
Debt
An accumulation money borrowed by one party from another. Many corporations/individuals use debt like a method for making large purchases that they could not afford under normal circumstances. A debt arrangement provides borrowing party...
High-frequency trader (HFT)
HFT is a type of investment strategy whereby stocks are rapidly bought and sold by a computer algorithm and held for a very short period, usually seconds or milliseconds. The advancement of technology over...
Securitization
The process through which various different kinds of debt that is initiated and managed through contracts is pooled into a financial product is known as securitization. This financial pooling can consist of debt instruments...
Forwards
A forward contract is a contractual agreement between two parties to buy or sell an asset at a price agreed upon today for delivery at a specified future date. It is different from a...
Bank
A bank is a financial institution that accepts deposits and uses the money for lending it individuals and/or businesses, directly or indirectly. It is basically a financial intermediary that connects customers that are in need...
Short
Shorting is a specialized finance term. It is also known as going short or short selling. These terms refer to the selling of the instrument or securities borrowed from the third party. Such third...
Mexican Peso-MXN
The peso is the legal tender of Mexico. A peso is denoted by sign $ or Mex $ (in order to differentiate it from other dollar denominated currencies) and its international exchange code (ISO...
NYSE Euronext
NYSE Euronext Inc. is a New York-City-based Euro-American multinational financial services company operating a number of securities exchanges, including the world’s largest stock exchange, the New York Stock Exchange. Back in March 2006, NYSE...
Chinese Yuan-CNY
Chinese Yuan (CNY) or the Renminbi is the official currency of the People’s Republic of China. This is currency is denoted by symbol ¥ and the code in international exchange markets is RMB. While...