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Electricity Rate Swap

A commodity-linked swap in which an electricity consumer (the swap buyer) has its electric bill paid by a counterparty (the…

Exchange-Traded Equity Index Futures

An equity index futures that is traded on a regulated futures exchange. More specifically, it is a standardized futures contract…

Energy Derivative

A derivative whose underlying asset is an energy product. Many energy products trade both over the counter and on exchanges…

Buy a Spread

An options trading strategy that is based on establishing a spread position in which the premium on the long option...

Bet Option

An option whose payoff is either a predetermined amount if the underlying asset or index is at or above (for...

Best Buy Option

A call lookback option which gives the holder the retroactive right, without the obligation, to purchase the underlying asset whether...

Delivery Date

The date on which a forward contract and a deliverable forward contract/ a futures contract is scheduled for delivery. It...

Average Forward Option

A forward option in which the payout is measured as the difference between the forward rate (or the strike) set…

American-Style Swaption

A swaption (swap option) that can be exercised anytime the holder finds favorable or suitable during the options life. Once…

Arrears Cap

An interest rate cap that has its rates reset in arrears and likewise paid in arrears. However, in practice, a…