Investment Terms: A
Description
This article is from the Investment
Terms.
Investment Terms: A
- Accrued Interest:
Interest earned between the most
recent interest payment and the present date but not yet paid to the
lender.
- Actuals:
See Cash
Commodity.
- Add-on Method:
A method of paying interest where the
interest is added onto the principal at maturity or interest payment
dates.
- Adjusted Futures Price:
The cash-price equivalent
reflected in the current futures price. This is calculated by taking
the futures price times the conversion factor for the particular
financial instrument (e.g., bond or note) being delivered.
- Against Actuals:
See Exchange For Physicals.
- Arbitrage:
The simultaneous purchase and sale of
similar commodities in different markets to take advantage of a price
discrepancy.
- Arbitration:
The procedure of settling disputes
between members, or between members and customers.
- Assign:
To make an option seller perform his
obligation to assume a short futures position (as a seller of a call
option) or a long futures position (as a seller of a put option).
- Associated Person (AP):
An individual who solicits
orders, customers, or customer funds (or who supervises persons
performing such duties) on behalf of a Futures Commission Merchant, an
Introducing Broker, a Commodity Trading Adviser, or a Commodity Pool
Operator.
- Associate Membership (CBOT):
A Chicago Board of Trade
membership that allows an individual to trade financial instrument
futures and other designated markets.
- At-the-Money Option:
An option with a strike price
that is equal, or approximately equal, to the current market price of
the underlying futures contract.
 
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