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Targeted Amortization Class

A type of bond class that has a schedule for repayment of principal which is protected against contraction risk for...

Interest Rate Futures

A futures contract which allows the buyer to lock in a future investment rate today or at a specific incoming...

Swap Futures

A futures contract which typically has an interest rate swap as underlying. It offers an instrumental tool for corporate treasurers,...

Spark Spread Futures

A futures contract that has the spark spread as underlying. This implies that an investor buys or sells the price...

Short the Basis

The purchase of futures contracts as a hedge against a short position in futures or options whereby a trader is...

Fiva

A forward or futures contract whose underlying is implied volatility. The parties to the contract trade implied volatility: buyers are...

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...

Cash-and-Carry Trade

Going long the basis, or more specifically the purchase of a cash-market investment instrument such as cash bonds or index...

Cash Stub

Also CTFF or cash-to-first futures. It is a short cash rate that is observed from current day to the maturity...