1. The same-day settlement of a currency trade in the forex market. This means that delivery and settlement of the transaction occur on the same date that the currency trade is made. In order for this to occur, the forex position must be opened and closed within the same trading day.Also referred to as "same-day settlement".2. In the context of futures contracts, a settlement term in a contract that stipulates that the underlying asset of the contract will not be delivered on the delivery date - rather, the net cash value of the position will be transferred to the applicable party instead. |||1. As is the case with most financial markets, when you place an order in the forex market, the trade is executed shortly afterward, but the settlement of trades - during which the trade details are entered into the books and records of the trading parties - typically occurs at a later time. Cash delivery is exceptional, because all of this happens in the same day.2. Rather than physically deliver the underlying commodity or asset to the contract holder, it is much easier to simply transact the net cash value of the futures position instead. This allows investors to hedge against price changes in the underlying asset without having to worry about physically taking delivery.
An index that is a composite average of ten leading indicators in the US. It one of the key elements in the Conference Board's analytic system, which is designed to signal peaks and troughs in the business cycle. Since it is an average, the leading index smooths out some of the volatility of individual components, thereby revealing turning points in the economic data more convincingly than any individual component. Generally known as the leading economic index (LEI). |||Components of the CB leading index include average weekly manufacturing hours, average weekly initial claims for unemployment insurance, manufacturers' new orders for consumer goods and non-defense capital goods, building permits and stock prices. Other components are indexes of supplier deliveries and consumer expectations, M2 money supply and the interest rate spread between 10-year Treasury bonds and federal funds.
The specified monetary value assigned to a security or asset. This price is determined by the bid and ask process of buyers and sellers interested in trading the security. |||In any exchange, sellers prefer to part with their assets for the highest price possible while investors interested in buying the same asset desire the lowest purchase price possible. At some point, a mutually agreeable price is reached between buyers and sellers. It is at this point that economists say the market has "cleared" and transactions take place. Thus, the clearing price of an asset is the price at which it was most recently traded.
A balance in an account that is able to be withdrawn or used in financial transactions. Until funds are considered to be cleared funds they are considered to be pending, and investors or customers will be unable to conduct transactions with them. |||When cash or checks are deposited into an account, either as an account funding transaction or as the result of the sale of a security, it may take several days until the financial institution is able to make all of the funds available for withdrawal or trading. Often, larger deposits may require a longer period of time to clear than smaller ones, especially if the size of the deposit requires a financial institution to comply with government regulations.
An acronym given to the countries Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa, which are predicted by some to be among the next emerging markets to quickly rise in economic prominence over the coming decades. The acronym plays off the term BRIC (Brazil, Russia, India, and China) which indicates the fastest growing emerging economies over the last decade. |||The positive aspects of the CIVETS group of countries includes relative political stability (especially when compared to previous generations), young populations that focused on education and overall growing economic trends. Exposure to these countries has recently become possible for the retail investor through the use of ETFs from specific countries.
The premier lobbying organization for U.K. businesses on national and international issues. The mission of the Confederation of British Industry (CBI) is to help create and sustain the conditions in which businesses in the United Kingdom can compete effectively and prosper. It achieves these objectives by working with the U.K. government, international legislators and policy-makers. |||The CBI was formed in 1965 and has offices in 13 distinct geographical areas in the United Kingdom. It also has offices in Brussels, Washington DC, Beijing and New Delhi. The main governing body of the CBI is its Council.
An option for which the underlying is another option. Therefore, there are two strike prices and two exercise dates. These are the four types of compound options:- Call on a call- Put on a put- Call on a put- Put on a call |||This type of option usually exists for currency or fixed-income markets, where an uncertainty exists regarding the option's risk protection capabilities. The advantages of compound options are that they allow for large leverage and they are cheaper than straight options. However, if both options are exercised, the total premium will be more than the premium on a single option.
An individual or a firm, registered with the Commodity Futures Trading Commission, that receives compensation for giving people advice on options, futures and the actual trading of managed futures accounts. Registration for CTAs is done through the National Futures Association, a self-regulated organization responsible for reviewing and accepting registrations. |||Registration for CTAs is required under the Commodity Exchange Act, which was passed in 1936 to better oversee the futures and options markets. Registration is required for any individual or firm profiting from the advice they give, unless they have not provided more than 15 persons with advice over the last year and they do not advertise themselves as a CTA. There is also no required registration if the individual or firm is a registered investment advisor with the SEC and only provides options and futures advice incidentally.