Derivative
What Is a Derivative?The term derivative refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). These contracts can be used to trade any number of assets and carry their own risks. Prices for derivatives derive from fluctuations in the underlying asset. These financial securities are commonly used to access certain markets and...
Derivative
What Is a Derivative?The term derivative refers to a type of financial contract whose value is dependent on an underlying asset, group of assets, or benchmark. A derivative is set between two or more parties that can trade on an exchange or over-the-counter (OTC). These contracts can be used to trade any number of assets and carry their own risks. Prices for derivatives derive from fluctuations in the underlying asset. These financial securities are commonly used to access certain markets and...
Gamma Definition
What is GammaGamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma is an important measure of the convexity of a derivative's value, in relation to the underlying. A delta hedge strategy seeks to reduce gamma in order to maintain a hedge over a wider price range. A consequence of reducing gamma, however, is that alpha will also be reduced. 0 seconds of 0 secondsVolume 75% 1:33GammaBasics of GammaGamma is the first derivative of...
Gamma Definition
What is GammaGamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma is an important measure of the convexity of a derivative's value, in relation to the underlying. A delta hedge strategy seeks to reduce gamma in order to maintain a hedge over a wider price range. A consequence of reducing gamma, however, is that alpha will also be reduced. 0 seconds of 0 secondsVolume 75% 1:33GammaBasics of GammaGamma is the first derivative of...
The Jones Act
What Is the Jones Act?The Jones Act is a federal law that regulates maritime commerce in the United States. The Jones Act requires goods shipped between U.S. ports to be transported on ships that are built, owned, and operated by United States citizens or permanent residents. The Jones Act is Section 27 of the Merchant Marine Act of 1920, which provided for the maintenance of the American merchant marine.1 2 Understanding the Jones ActConsidered protectionist legislation, the Jones Act focuse...
The Jones Act
What Is the Jones Act?The Jones Act is a federal law that regulates maritime commerce in the United States. The Jones Act requires goods shipped between U.S. ports to be transported on ships that are built, owned, and operated by United States citizens or permanent residents. The Jones Act is Section 27 of the Merchant Marine Act of 1920, which provided for the maintenance of the American merchant marine.1 2 Understanding the Jones ActConsidered protectionist legislation, the Jones Act focuse...
Money Laundering
What Is Money Laundering?Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean. Money laundering is a serious financial crime that is employed by white-collar and street-level criminals alike.1 Most financial companies have anti-money-launde...
Money Laundering
What Is Money Laundering?Money laundering is the illegal process of making large amounts of money generated by a criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean. Money laundering is a serious financial crime that is employed by white-collar and street-level criminals alike.1 Most financial companies have anti-money-launde...
Over-the-Counter (OTC)
What Is Over-the-Counter (OTC)?Over-the-counter (OTC) refers to the process of how securities are traded via a broker-dealer network as opposed to on a centralized exchange. Over-the-counter trading can involve equities, debt instruments, and derivatives, which are financial contracts that derive their value from an underlying asset such as a commodity. In some cases, securities might not meet the requirements to have a listing on a standard market exchange such as the New York Stock Exchange...
Over-the-Counter (OTC)
What Is Over-the-Counter (OTC)?Over-the-counter (OTC) refers to the process of how securities are traded via a broker-dealer network as opposed to on a centralized exchange. Over-the-counter trading can involve equities, debt instruments, and derivatives, which are financial contracts that derive their value from an underlying asset such as a commodity. In some cases, securities might not meet the requirements to have a listing on a standard market exchange such as the New York Stock Exchange...
