In options realm, a strip is a combination of options whereby two puts and one call are bought on the...
A spark spread that captures the gross margin reflecting the economics of a coal-fired power plant. More specifically, it refers...
A forward pricing sales arrangement which involves determining the cash price of a forward sales agreement (a futures contract) either...
Not to be confused with a futures option, it is a futures contract on an option’s payoff. In fact, a...
A commodity futures in which the underlying is a hard commodity such as gold (gold futures), silver (silver futures), copper...
A situation of backwardation in which a specific period is “squeezed”, i.e., characterized by forced, not normal, trading. This usually...
A weather derivative that is principally used to transfer risk associated with adverse weather events. It is an index-based futures...
A cash and carry transaction that is reversed. It involves the simultaneous sale of a cash market commodity/ instrument for...
On the futures markets, it indicates that the highest current bid on a futures contract is below the maximum price...
Going long the basis, or more specifically the purchase of a cash-market investment instrument such as cash bonds or index...