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CH

It stands for clearing house; a firm that undertakes guaranteeing the performance and contractual fulfillment of the parties to the...

KO Option

It stands for knock-out option; an option that automatically deactivates or expires only when a certain price of its underlying...

NTM Option

It stands for near-the-money option; an option contract in which the underlying's market price is very near to the strike...

NPA

It stands for notional principal amount; the nominal value that is used to calculate swap payments. For example, in an...

OBS Instrument

It stands for off-balance sheet instrument; a contract which is mainly based on a notional principal amount and represents a...

OTE

It stands for open trade equity; this refers to the unrealized gain or loss on open positions in futures. That...

Digital CDS

A binary credit default swap. Unlike standard credit default swaps (CDS) which require a valuation following a credit event (usually...

Quanto CDS

A credit default swap (CDS) in which the swap premium payments, and/or the cashflows in the case of default, are not in the same currency,...

XPO

An American-style, non-standard option that has a perpetual life. In other words, it neither expires nor has an exercise limit. Since it...

CLD

It stands for credit-linked deposit; a credit-linked hybrid that combines a deposit with a credit default swap that the investor (depositor) sells to the deposit...