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Short Selling

An arbitrage trading strategy that involves selling securities an investor doesn't own. The broker borrows the securities from another client...

Weather Futures

A weather derivative that is principally used to transfer risk associated with adverse weather events. It is an index-based futures...

Worst-Of Option

An option (a special case of rainbow options) where the holder is long put on the worst performing stock (asset)...

Widening Basis

The basis can develop a widening trend when the spot price of an asset/ commodity increases faster than the futures...

At-The-Money Call

A call option whose strike price, at a given point in time before or at expiration, is equal to the...

At-The-Money Option

An option which has a strike price equal or approximately equal to the underlying asset's price. There is little or...

Weighted Variance Swap

A variation on variance swaps which weights the periodic squared return of the underlying by the ratio of current price...

Wedding Band Swap

An interest rate swap which relatively limits payment on its floating-rate leg if an index or reference rate remains within...

Warrant-Driven Swap

A swap which has a warrant attached thereto, and whereby a counterparty can increase the notional amount of the swap...

Weather Option

A weather derivative that involves the purchase or sale of the right to trade the financial effects of weather changes....