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Out-of-The-Money Futures

A futures (futures contract) that is out of the money (OTM); a futures contract is out of the money for...

Futures Long

The trader who takes a long position in futures, i.e., he/she will buy the underlying commodity of a futures contract,…

EFP

It stands for exchange of futures for physicals. By definition, it is a transaction that involves simultaneously taking a cash…

Eurodollar Futures Stack Hedge

A stack hedge that uses Eurodollar futures. The hedger stacks a number of these futures for subsequent periods in one…

E-Mini Futures

A type of electronically traded futures contract that is smaller in size than otherwise identical futures contract. That is, an...

Energy Derivative

A derivative whose underlying asset is an energy product. Many energy products trade both over the counter and on exchanges…

Deferred Futures

A futures contract which matues at most distant months. That is, it has expirations or delivery dates furthest into the…

Drawdown

In general, drawdown (also draw-down) refers to a reduction in the value of an asset/ investment/ account/ fund below its…

IMM Futures Rate

The interest rate on international money market futures (IMM futures). It is a money market rate that used as underlying...

Long-Dated Forward Rate Agreement

A forward rate agreement (FRA) where the settlement date is more than one year in the future at the time…