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have a multiplier that is multiplied by the index to calculate the contract value, and settle in cash.
An offsetting trade, entering into an opposite position in the same
contract.Cash payment at expiration (cash-settlement contract).Delivery
of the asset specified in the contract.An exchange for physicals (asset
delivery off the exchange).
for a face value of $100,000, give the short a choice of bonds to
deliver, and use conversion factors to adjust the contract price for the
bond that is delivered.
When margin falls below this amount, it must be brought back up to its initial level by depositing additional cash.
option's owner the right, but not the obligation, to buy a specified
quantity of the asset from the option writer at the exercise price
specified in the option for a given time period.
for a face value of $1,000,000, are quoted as 100 minus annualized 90-day LIBOR in percent, and settle in cash.
based on the daily settlement price, the average of the prices for trades during a closing period set by the exchange
deposit required to initiate a futures position
for delivery of standardized amounts of foreign currency
minimum margin amount.
--the process of adding gains to or subtracting losses from the margin
account daily, based on the change in settlement prices from one day to
the next. --day's gains in contract value + long's margin balance and
subtracts them from the short's margin balance, or subtracts the day's
loss in contract value from the long's margin balance + short's margin
balance.
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