1154:
197:
positions in single stock futures typically do not receive dividends and holders of short positions do not pay dividends. Single-stock futures may be cash-settled or physically settled by the transfer of the underlying stocks at expiration, although in the United States only physical settlement is used to avoid speculation in the market.
212:
equity-based cash flow (such as from a stock asset) that is traded for a fixed-income cash flow (such as a benchmark rate), but this is not necessarily the case. Besides diversification and tax benefits, equity swaps also allow large institutions to hedge specific assets or positions in their portfolios.
181:
Equity basket derivatives are futures, options or swaps where the underlying is a non-index basket of shares. They have similar characteristics to equity index derivatives, but are always traded OTC (over the counter, i.e. between established institutional investors), as the basket definition is not
196:
are exchange-traded futures contracts based on an individual underlying security rather than a stock index. Their performance is similar to that of the underlying equity itself, although as futures contracts they are usually traded with greater leverage. Another difference is that holders of long
95:
that entitles the holder to buy stock of the company that issued it at a specified price, which is much lower than the stock price at time of issue. Warrants are frequently attached to bonds or preferred stock as a sweetener, allowing the issuer to pay lower interest rates or dividends. They can be
211:
An equity swap is an exchange of future cash flows between two parties that allows each party to diversify its income for a specified period of time while still holding its original assets. The two sets of nominally equal cash flows are exchanged as per the terms of the swap, which may involve an
68:
Equity options are the most common type of equity derivative. They provide the right, but not the obligation, to buy (call) or sell (put) a quantity of stock (1 contract = 100 shares of stock), at a set price (strike price), within a certain period of time (prior to the expiration date).
134:
Investors can gain exposure to the equity markets using futures, options and swaps. These can be done on single stocks, a customized basket of stocks or on an index of stocks. These equity derivatives derive their value from the price of the underlying stock or stocks.
153:. They can be used for hedging against an existing equity position, or speculating on future movements of the index. Indices for futures include well-established indices such as
126:
with debt- and equity-like features. It can be used by investors to obtain the upside of equity-like returns while protecting the downside with regular bond-like coupons.
697:
272:
1037:
727:
859:
595:
1097:
265:
1194:
1184:
1032:
677:
1179:
1072:
610:
464:
258:
691:
1189:
869:
973:
784:
144:
1092:
1087:
742:
687:
1042:
712:
702:
570:
411:
343:
991:
839:
824:
789:
732:
51:
1052:
903:
819:
396:
717:
1006:
963:
953:
943:
664:
605:
540:
494:
489:
363:
323:
290:
221:
193:
149:
Stock markets index futures are futures contracts used to replicate the performance of an underlying
25:
722:
1011:
799:
545:
1062:
1047:
1016:
1001:
968:
834:
625:
590:
353:
318:
281:
150:
119:
92:
1057:
996:
983:
958:
844:
630:
426:
78:
948:
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928:
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864:
794:
560:
555:
527:
479:
358:
298:
243:
109:
63:
47:
43:
173:
country indices. Indices for OTC products are broadly similar, but offer more flexibility.
1158:
1128:
1123:
1077:
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672:
645:
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170:
123:
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565:
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474:
469:
449:
373:
158:
1173:
1113:
1082:
923:
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809:
804:
640:
512:
459:
454:
436:
333:
313:
933:
707:
635:
615:
575:
444:
416:
406:
348:
814:
682:
653:
649:
600:
391:
386:
206:
1138:
774:
769:
535:
421:
225:
154:
39:
33:
328:
1153:
898:
620:
517:
338:
84:
17:
250:
166:
115:
36:
114:
Convertible bonds are bonds that can be converted into shares of
50:
are by far the most common equity derivatives, however there are
100:
of the bond, and make them more attractive to potential buyers.
254:
162:
220:
Other examples of equity derivative securities include
1106:
1025:
982:
878:
755:
663:
526:
435:
372:
306:
297:
185:These are used normally for correlation trading.
182:standardized in the way that an equity index is.
122:, usually at some pre-announced ratio. It is a
266:
8:
303:
273:
259:
251:
1098:Power reverse dual-currency note (PRDC)
1038:Constant proportion portfolio insurance
236:
52:many other types of equity derivatives
7:
1033:Collateralized debt obligation (CDO)
244:Investopedia.com—Equity derivatives
14:
130:Equity futures, options and swaps
1152:
28:whose value is at least partly
860:Year-on-year inflation-indexed
1:
870:Zero-coupon inflation-indexed
1073:Foreign exchange derivative
465:Callable bull/bear contract
216:Exchange-traded derivatives
1211:
204:
142:
139:Stock market index futures
107:
76:
61:
54:that are actively traded.
1147:
974:Stock market index future
288:
177:Equity basket derivatives
145:Stock market index future
1093:Mortgage-backed security
1088:Interest rate derivative
1063:Equity-linked note (ELN)
1048:Credit-linked note (CLN)
1043:Contract for difference
344:Risk-free interest rate
1195:Management cybernetics
825:Forward Rate Agreement
1185:Derivatives (finance)
1053:Credit default option
397:Employee stock option
222:exchange-traded funds
1007:Inflation derivative
992:Commodity derivative
964:Single-stock futures
954:Normal backwardation
944:Interest rate future
785:Conditional variance
291:Derivative (finance)
194:Single-stock futures
189:Single-stock futures
96:used to enhance the
1159:Business portal
1012:Property derivative
1180:Capital management
1017:Weather derivative
1002:Freight derivative
984:Exotic derivatives
904:Commodities future
591:Intermarket spread
354:Synthetic position
282:Derivatives market
151:stock market index
1190:Options (finance)
1167:
1166:
1068:Equity derivative
1058:Credit derivative
1026:Other derivatives
997:Energy derivative
959:Perpetual futures
840:Overnight indexed
790:Constant maturity
751:
750:
698:Finite difference
631:Protective option
104:Convertible bonds
79:Warrant (finance)
32:from one or more
22:equity derivative
1202:
1157:
1156:
929:Forwards pricing
703:Garman–Kohlhagen
304:
275:
268:
261:
252:
246:
241:
110:Convertible bond
64:Option (finance)
1210:
1209:
1205:
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1203:
1201:
1200:
1199:
1170:
1169:
1168:
1163:
1151:
1143:
1129:Great Recession
1124:Government debt
1102:
1078:Fund derivative
1021:
978:
939:Futures pricing
914:Dividend future
909:Currency future
892:
874:
747:
723:Put–call parity
659:
646:Vertical spread
581:Diagonal spread
551:Calendar spread
522:
431:
368:
293:
284:
279:
249:
242:
238:
234:
218:
209:
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124:hybrid security
118:in the issuing
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11:
5:
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1134:Municipal debt
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1126:
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1119:Corporate debt
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1100:
1095:
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1075:
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976:
971:
966:
961:
956:
951:
946:
941:
936:
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926:
921:
919:Forward market
916:
911:
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895:
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891:
890:
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876:
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872:
867:
862:
857:
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842:
837:
832:
827:
822:
817:
812:
807:
802:
800:Credit default
797:
792:
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772:
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710:
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695:
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669:
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661:
660:
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657:
643:
638:
633:
628:
623:
618:
613:
608:
603:
598:
596:Iron butterfly
593:
588:
583:
578:
573:
568:
566:Covered option
563:
558:
553:
548:
543:
538:
532:
530:
524:
523:
521:
520:
515:
510:
505:
504:Mountain range
502:
497:
492:
487:
482:
477:
472:
467:
462:
457:
452:
447:
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439:
433:
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409:
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235:
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205:Main article:
202:
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190:
187:
178:
175:
143:Main article:
140:
137:
131:
128:
108:Main article:
105:
102:
77:Main article:
74:
71:
62:Main article:
59:
58:Equity options
56:
24:is a class of
13:
10:
9:
6:
4:
3:
2:
1207:
1196:
1193:
1191:
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1186:
1183:
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1160:
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1140:
1137:
1135:
1132:
1130:
1127:
1125:
1122:
1120:
1117:
1115:
1114:Consumer debt
1112:
1111:
1109:
1107:Market issues
1105:
1099:
1096:
1094:
1091:
1089:
1086:
1084:
1083:Fund of funds
1081:
1079:
1076:
1074:
1071:
1069:
1066:
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1061:
1059:
1056:
1054:
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1049:
1046:
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1036:
1034:
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1024:
1018:
1015:
1013:
1010:
1008:
1005:
1003:
1000:
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993:
990:
989:
987:
985:
981:
975:
972:
970:
967:
965:
962:
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957:
955:
952:
950:
947:
945:
942:
940:
937:
935:
932:
930:
927:
925:
924:Forward price
922:
920:
917:
915:
912:
910:
907:
905:
902:
900:
897:
896:
894:
889:
886:
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877:
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868:
866:
863:
861:
858:
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851:
848:
846:
843:
841:
838:
836:
835:Interest rate
833:
831:
828:
826:
823:
821:
818:
816:
813:
811:
808:
806:
803:
801:
798:
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788:
786:
783:
781:
778:
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773:
771:
768:
766:
763:
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758:
754:
744:
741:
739:
736:
734:
731:
729:
728:MC Simulation
726:
724:
721:
719:
716:
714:
711:
709:
706:
704:
701:
699:
696:
693:
689:
688:Black–Scholes
686:
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668:
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662:
655:
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647:
644:
642:
641:Risk reversal
639:
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629:
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624:
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619:
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609:
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604:
602:
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597:
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589:
587:
584:
582:
579:
577:
574:
572:
571:Credit spread
569:
567:
564:
562:
559:
557:
554:
552:
549:
547:
544:
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537:
534:
533:
531:
529:
525:
519:
516:
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503:
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495:Interest rate
493:
491:
490:Forward start
488:
486:
483:
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478:
476:
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468:
466:
463:
461:
458:
456:
453:
451:
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443:
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434:
428:
425:
423:
420:
418:
417:Option styles
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388:
385:
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380:
379:
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371:
365:
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355:
352:
350:
347:
345:
342:
340:
337:
335:
334:Open interest
332:
330:
327:
325:
322:
320:
317:
315:
314:Delta neutral
312:
311:
309:
305:
302:
300:
296:
292:
287:
283:
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262:
257:
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138:
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125:
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117:
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101:
99:
94:
90:
86:
80:
72:
70:
65:
57:
55:
53:
49:
45:
41:
38:
35:
31:
27:
23:
19:
1067:
934:Forward rate
845:Total return
733:Real options
636:Ratio spread
616:Naked option
576:Debit spread
407:Fixed income
349:Strike price
239:
226:Intellidexes
219:
210:
192:
184:
180:
148:
133:
113:
88:
82:
67:
29:
21:
15:
865:Zero Coupon
795:Correlation
743:Vanna–Volga
601:Iron condor
387:Bond option
207:Equity swap
201:Equity swap
155:S&P 500
26:derivatives
1174:Categories
1139:Tax policy
855:Volatility
765:Amortising
606:Jelly roll
541:Box spread
536:Backspread
528:Strategies
364:Volatility
359:the Greeks
324:Expiration
232:References
169:and other
40:securities
34:underlying
830:Inflation
780:Commodity
738:Trinomial
673:Bachelier
665:Valuation
546:Butterfly
480:Commodore
329:Moneyness
969:Slippage
899:Contango
883:Forwards
850:Variance
810:Dividend
805:Currency
718:Margrabe
713:Lattices
692:equation
678:Binomial
626:Strangle
621:Straddle
518:Swaption
500:Lookback
485:Compound
427:Warrants
402:European
382:American
374:Vanillas
339:Pin risk
319:Exercise
159:FTSE 100
93:security
73:Warrants
888:Futures
508:Rainbow
475:Cliquet
470:Chooser
450:Barrier
437:Exotics
299:Options
120:company
89:warrant
85:finance
48:futures
44:Options
30:derived
18:finance
949:Margin
815:Equity
708:Heston
611:Ladder
561:Condor
556:Collar
513:Spread
460:Binary
455:Basket
167:CAC 40
37:equity
820:Forex
775:Basis
770:Asset
757:Swaps
683:Black
586:Fence
445:Asian
307:Terms
116:stock
98:yield
91:is a
20:, an
654:Bull
650:Bear
392:Call
224:and
87:, a
46:and
422:Put
171:G12
163:DAX
83:In
16:In
1176::
652:,
412:FX
228:.
165:,
161:,
157:,
42:.
694:)
690:(
656:)
648:(
274:e
267:t
260:v
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