Understanding the Markets
This text is a comprehensive resource from a leading financial management consultant for global banks and institutions which looks at the financial markets that support the trading, dealing and investment processes.
TABLE OF CONTENTS Understanding the Markets
H-I
- Haircut
- The discount applied to the value of collateral used to cover margins.
- Hard commodities
- Commodities such as tin or zinc. Futures on them are traded on the London Metal Exchange.
- Hedge ratio
- Determining the ratio of the futures to the cash position so as to reduce price risk.
- Hedging
- A trading method which is designed to reduce or mitigate risk. Reducing the risk of a cash position in the futures instrument to offset the price movement of the cash asset. A broader definition of hedging includes using futures as a temporary substitute for the cash position.
- Hit
- A dealer who agrees to sell at the bid price quoted by another dealer is said to hit that bid.
- HKE
- The holding company of the Hong Kong Futures Exchange, The Stock Exchange of Hong Kong Ltd and The Hong Kong Securities Clearing Company Ltd.
- Holder
- A person who buys a put or call option.
- Holding company
- A company which owns more than 50% of the shares of another company as its holding company.
- Home state regulation
- Under the ISD, an investment business is authorized in the place of its head office and registered office. This home state authorization entitles it to conduct business in any member state of the European Union.
- Host state regulation
- Any European investment business operating outside its home basis is regulated by its host for its conduct of business.
- ICOM
- International Currency Options Market: standard documentation for netting foreign exchange option settlements.
- Immobilization
- The storage of...
Copyright David Loader 2002 under license agreement with Books24x7
