Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


A


B


  • B&H = Buy and Hold

    B&H is an investment strategy that involves buying stock regardless of where they are in the cyc...

  • BAU = Business As Usual

    It refers to the normal daily operations of a company or organization, without any significant chang...

  • Bbls = barrels of oil

    A barrel of oil is a standard unit of measurement in the oil industry. It is used to quantify crude ...

  • BEL20

    The BEL 20 is the benchmark stock market index of Euronext Brussels. It tracks the performance of 20...

  • BIS = Bank for International Settlements

    The Bank for International Settlements is an international financial institution which is owned by m...

C


D


  • D1 = Delta One

    Delta one products are financial derivatives that have no optionality and as such have a delta of on...

  • DAX

    The DAX is a stock market index consisting of the 40 major German blue chip companies trading on the...

  • DCA = Dollar Cost Averaging

    DCA involves investing the same amount of money in a target security at regular intervals over a cer...

  • DCM = Debt Capital Markets

    DCM is a department that acts as an intermediary between issuers of public or private debt and marke...

E


F


  • FTD = Failure to Deliver

    Failure to Deliver refers to a situation where one party in a trading contract doesn't deliver on th...

  • FTP = Fund Transfer Pricing

    The Fund Transfer Pricing measures the contribution by each source of funding to the overall profita...

  • FTSE 100

    A share index of the stocks of the 100 companies listed on the London Stock Exchange with the highes...

  • FTSE MIB

    It is the major stock index in Italy. It consists of the 40 most traded stocks on the exchange.

  • FVA = Funding Valuation Adjustment

    An FVA is an adjustment to the value of a derivative or a derivatives portfolio that is designed to ...

  • FX = Forex = Foreign Exchange

    FX is the global marketplace for the trading of one nation's currency for another. The forex market...

G


  • GBP = British Pound Sterling

    GBP is the official currency of the United Kingdom. It is one of the most widely traded currencies i...

  • GDR = Global Depositary Receipt

    GDRs are global certificates for securities. They serve to simplify the custody and management of se...

  • GFD = Good For Day

    A GFD is a type of order that will remain active until executed (in part of full) or until the end o...

  • GST = Group Stress Test

    A stress test performed at a group level to assess the financial resilience of an organization under...

  • GTC = Good-Til-Cancelled

    A GTC order is an order to buy or sell a security at a particular price that is active until filled ...

  • GTD = Good ’Til Day

    A GTD order is an order to buy or sell a security at a particular price that will remain in place un...

H


  • HSI = Hang Seng Index

    HSI is the benchmark stock market index of the Hong Kong Stock Exchange (SEHK), tracking the perform...

  • HVaR = Historical Value-at-Risk

    The HVaR uses historical data and scenarios to measure VaR.   The benefits of this approach ar...

  • HY = High Yield

    High-yield bonds are debt securities that pay higher interest rates because they are issued by corpo...

I


J


K


  • KT = Keller-Tang model

    The Keller-Tang (KT) model is a stochastic volatility model used in derivatives pricing and volatili...

  • KTB = Korean Treasury Bond

    Bonds issued with 3-, 5-, 10-, 20-, 30- and 50-year maturities with every-six-month interest coupons...

L


M


N


  • NDF = Non-Deliverable Forward

    An NDF is a cash-settled short term forward contract on a thinly traded or not fully convertible for...

  • NDO = Non-Deliverable Option

    A NDO is a financial derivative where, if exercised, settlement is not made through the actual deliv...

  • NFP = Non-Farm Payrolls

    NFP is an important US statistic compiled by the Bureau of Labour statistics, which shows monthly ne...

  • NII = Net Interest Income

    NII refers to the difference between the revenue generated from a bank's interest-bearing assets (li...

O


  • OSE = Osaka Exchange

    The OSE is the leading Derivatives Exchange in Japan.

  • OTC = Over-the-Counter

    The OTC market is where securities trade via a broker-dealer network instead of on a centralized exc...

  • OTM = Out-of-the-Money

    OTM refers to the moneyness of an option. Moneyness is a concept referring to the position of the un...

P


Q


R


S


T


  • TRY = Turkish Lira

    TRY is the official currency from Turkey. 

  • TS = Term sheet

    A term sheet is a non-binding agreement that shows the basic terms and conditions of an investment. ...

  • TTF = Title Transfer Facility

    TTF is a virtual trading point for natural gas in the Netherlands. This trading point provides facil...

  • TV = Theoretical Value

    The Theoretical Value of an option is the premium calculated using a standard option pricing model, ...

  • TV = Time Value

    In options trading, Time Value is the portion of an option's premium that exceeds its intrinsic valu...

  • TVOG = Time Value of Options and Guarantees

    The TVOG captures the time value of embedded options and guarantees built into an insurance product....

U


V


  • VaR = Value at Risk

    VaR is a statistical measure of the riskiness of financial entities or portfolios of assets. It is d...

  • VFM = Value For Money

    Value for Money (VFM) in Structured Products means assessing whether a product offers a fair balance...

  • VIX = Volatility Index

    CBOE Volatility Index, VIX, is a popular measure of the stock market's expectation of volatility bas...

W


  • WWR = Wrong-Way Risk

    Wrong-way risk arises when the exposure to a counterparty increases together with the risk of the co...

X


  • XVA = X-Value Adjustment

    XVA is a collective term that covers the different types of valuation adjustments relating to deriva...

Y


  • YC = Yield Curve

    A yield curve is a representation of the relationship between market remuneration rates and the rema...

  • YCC = Yield Curve Control

    Yield curve control involves targeting a longer-term interest rate by a central bank, then buying or...

  • YTC = Yield To Call

    Yield to call is the return that a bondholder will be paid if the bond is held until the call date, ...

  • YTM = Yield To Maturity

    The yield to maturity is the expected annual rate of return earned on a bond, assuming the debt secu...

  • YTW = Yield to Worst

    Yield to worst is a measure that helps investors assess the minimum yield they can expect from a bon...

Z


  • ZCB = Zero-Coupon Bond

    ZCBs are bonds which bear no regular interest payments. They are discounted upon issue that is issue...

  • ZCS = Zero-Coupon Swap

    A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate paymen...