A stock index designed to measure absolute returns. The absolute return index is actually a composite index made up of five other indexes. This index is used to compare the absolute returns posted by the hedge fund market as a whole against individual hedge funds. The hedge fund absolute return index (HFRX) measures the comprehensive overall returns of hedge funds. Since hedge funds explore unique investment strategies and seek to obtain absolute returns rather than focus on beating the benchmark, the HFRX is representative of all hedge fund strategies.
The name given to participants within the futures market that are involved in the solicitation or facilitation of transacting customer orders, the maintenance of discretionary accounts, or the true participatory involvement in the futures market. Associated people are bound by the rules and regulations of different futures exchanges and regulatory bodies.
A record of all the positions that a trader is holding. This record shows the total amount of long and short position that the trader has undertaken. For example, a trader with a very simple "book" may hold two positions: one long position of XYZ stock worth $1,500 and a short position worth $2,500. Keeping an up-to-date book allows a trader to be aware of his or her positions, and would be a good step in preventing a trader from being exposed to any one position for a long period of time.
A bond future is a contractual obligation for the contract holder to purchase or sell a bond on a specified date at a predetermined price. A bond future can be bought in a futures exchange market and the prices and dates are determined at the time the future is purchased. Bond contracts are standardized, and are overseen by a regulatory agency that ensures a certain level of equality and consistency. However, this form of derivative can be risky because it involves trading at a future date with only current information. The risk is potentially unlimited, for either the buyer or seller of the bond because the price of the underlying bond may change drastically between the exercise date and the initial agreement.
A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. Its services, which span their own platform, television, radio and magazines, offer professionals analytic tools. One of its key revenue earners and what they are well known for is the Bloomberg Terminal - an integrated platform that streams together price data, financials, news, trading data, and much more to more than 250,000 customers worldwide.
A large amount of the same security bought or sold by institutional or other large investors. There is no official size designation constituting a block of securities, but a commonly used threshold is more than 10,000 equity shares or more than $200,000 of debt securities. Blocks of securities are traded in what are called "block trades" and serve to facilitate trades involving institutional investors or other large investors who require such bulk trades to meet their needs.
Originally one of the oldest stock exchanges in Germany, BER was founded in 1685. The Berlin Stock exchange merged with Borse Bremen in 2003, and the new version is called the Borse Berlin-Bremen. The exchange eventually adopted Equiduct Trading, which allows it to trade more foreign stocks and expand its product offerings. The BER lists over 6,000 U.S. companies, which has created a fair amount of controversy within the exchange. This controversy was further fueled by the fact that over a thousand of these companies were listed without anyone's permission.
The valuation at which the property should exchange at the date of origin, and the beginning of each period. The beginning market value at the start of every period is equal to the ending market value of the previous period. The market value is based on what both the buyer and seller (effectively, the market), deem the true value of the property to be. Market value is similar to market price given that the market remains efficient and the players are rational.