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Cooling Degree Days

The maximum of zero and the amount by which the daily average temperature exceeds 65 Fahrenheit. The average temperature is…

Roll Forward

An option-related strategy that is based on the replacement of a position by closing out one option with a near-month…

Shipping Derivative

A derivative whose underlying is the freight price/rate in the shipping markets (such as the container ship markets). Shipping derivatives...

STIR Swap

An acronym for short-term interest rate swap. By definition, it is an interest rate swap (IRS) whose maturity doesn't exceed...

Short Gut Iron Albatross

A gut iron albatross spread which is constructed by selling one call at the lowest exercise price, buying one call...

Standardized Tranche CDS

A type of first loss credit default swaps (FLCDS) or tranche loss credit default swaps (TLCDS) in which the reference...

Seagull Option

A three-pronged option trading strategy that involves buying (selling) a call spread and selling (buying) a put option in order...

Short Calendar Strangle

A calendar strangle that is designed to profit as the underlying is expected to break out in either direction. This...

CTS

It stands for conditional trigger swap; a trigger swap (a hybrid derivative/ hybrid product) that capitalizes on a combined performance...

Conditional Trigger Swap

A trigger swap (a hybrid derivative/ hybrid product) that capitalizes on a combined performance of a specific equity and interest...