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Spark Spread

The spread between the price of electricity and the price of natural gas needed to generate that electricity. More specifically,...

Crush Spread

A commodity trading strategy that is used in the soybeans futures market and involves the purchase of soybean futures and...

Short Jelly Roll

A jelly roll consists of a long time spread and a short time spread, one made up of puts, the...

FPA

A swap agreement that entails the payment of fixed forward points set at the time of trade in exchange for...

Forward Point Agreement

A swap agreement that entails the payment of fixed forward points set at the time of trade in exchange for...

Forward Swap Agreement

An agreement between two parties to exchange interest rates, asset performances or prices or almost any economic values on a...

Forward Volatility Agreement

An agreement that a seller and a buyer enter into in order to exchange a straddle option at a specific...

Forward Variance Swap

A variant on variance swap that allows investors to take a view on future variance swap rates rather than bet...

Forward Rate Agreement

FRA, for short, is an over-the-counter (OTC) agreement to apply a certain interest rate to either lending or borrowing a...

Overnight Margin

The cash which a futures trader has to deposit in a margin account as security for guaranteeing a contract fulfillment at...