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Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "F"

Displaying next 500 results of 558
FUTOP
Definition: The Danish derivatives market, merged with the Copenhagen Stock Exchange in 1997.
Future
Definition: A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Future Investment Opportunities
Definition: The identification of additional, more valuable, investment opportunities in the future that result from a current opportunity or operation.
Future Value
Definition: The amount of cash at a specified date in the future that is equivalent in value to a specified sum today.
Futures
Definition: A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Futures Commission Merchant (FCM)
Definition: A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange and, who, in connection with such solicitation or acceptance of orders, accepts any money or securities to provide margin for any resulting trades or contracts. The FCM must be licensed by the CFTC. Related: Commission house, omnibus account.
Futures Contract
Definition: A legally binding agreement to buy or sell a commodity or financial instrument in a designated future month at a price agreed upon today by the buyer and seller. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. A futures contract differs from an option because an option is the right to buy or sell, while a futures contract is the promise to actually make a transaction. A future is part of a class of securities called derivatives, so named because such securities derive their value from the worth of an underlying investment.
Futures Contract Multiple
Definition: A constant set by an exchange, which when multiplied by the futures price gives the dollar value of a stock index futures contract.
Futures Industry Association(FIA)
Definition: A membership organization for Futures Commission Merchants (FCMs) which, among other activities, offers education courses on the futures markets, disburses information, and lobbies on behalf of its members.
Futures Market
Definition: A market where contracts for future delivery of a commodity or a security are bought or sold.
Futures Option
Definition: An option on a futures contract. Related: Options on physicals.
Futures Price
Definition: The price at which parties to a futures contract agree to transact upon the settlement date.
Futures-equivalent
Definition: A term frequently used with reference to speculative position limits for options on futures contracts. The futures-equivalent of an option position is the number of options multiplied by the previous day's risk factor or delta for the option series. For example, ten deep out-of-money options with a delta of 0.20 would be considered two futures-equivalent contracts. The delta or risk factor used for this purpose is the same as that used in delta-based margining and risk analysis systems
Fuzzy Logic
Definition: A system which mathematically models complex relationships which are usually handled in a vague manner by language. Under the title of "Fuzzy Logic" falls formal fuzzy logic (a multi-valued form of logic), and fuzzy sets. Fuzzy sets measure the similarity between an object and a group of objects. A member of a fuzzy set can belong to both the set, and its compliment. Fuzzy sets can more closely approximate human reasoning than traditional "crisp" sets. See: Crisp sets.
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