|
Dated date: |
The day interest starts to accrue normally the issue date. |
|
Daily Cut-off |
The point in time for each business day selected by Delta
Stock to signify the end of the business day. |
|
Day Count basis: |
Following is a list of conventions used to count the
appropriate number of days between two dates in order to
calculate accrued interest, yields, and odd coupon
amounts. For each rule, the numerator indicates the number
of days between the dates and determines what happens if
one of the dates falls on the 31st of a month. The
denominator indicates how many days are considered in a
year. Actual/Actual
Numerator: The actual number of days between two dates.
Denominator: The actual number of days in the coupon
period times the coupon frequency resulting in values
ranging from 362 to 368 for semiannual bonds.
Actual/360
Numerator: The actual number of days between two dates.
Denominator: 360
Actual/365
Numerator: The actual number of days between two dates.
Denominator: 365
Actual/365L
This rule is used for some Sterling floating rate notes
(FRNs).
Numerator: The actual number of days between two dates.
Denominator: If the next coupon payment date falls within
a leap year use 366, otherwise use 365.
30/360 Rules
Numerator: The basic 30/360 method for calculating the
numerator is illustrated by the following expression:
D days = D2 - D1 + 30 (M2 - M1) + 360 (Y2 - Y1)
where M1/D1/Y1 is the first date
M2/D2/Y2 is the second date
Denominator: 360
The following three variants of this basic rule differ by
making certain adjustments to D1, D2, and M2:
30/360
1) If D1 falls on the 31st, then change it to the 30th.
2) If D2 falls on the 31st, then change it to the 30th
only if D1 falls either the 30th or 31st.
30E/360
1) If D1 falls on the 31st, then change it to the 30th.
2) If D2 falls on the 31st, then change it to the 30th.
30E+/360
1) If D1 falls on the 31st, then change it to the 30th.
2) If D2 falls on the 31st, then change it to one and
increase M2 by one.
|
|
Day Order: |
An order that if not executed on the specific day is
automatically cancelled. |
|
Day trader |
Speculators who take positions in commodities that are
then liquidated prior to the close of the same trading
day. |
|
Day trader: |
Speculators who take positions in commodities which are
then liquidated prior to the close of the same trading
day. |
|
Day Trading |
Refers to opening and closing the same position or
positions within one day's trading. |
|
Daylight exposure limit: |
see intraday position. |
|
Deal date |
The date on which a transaction is agreed upon. |
|
Deal date: |
The date on which a transaction is agreed upon |
|
Deal Ticket |
The primary method of recording the basic information
relating to a transaction. |
|
Deal Ticket: |
The primary method of recording the basic information
relating to a transaction. |
|
Dealer |
An individual who acts as a principal or counterpart to a
transaction. Principals take one side of a position,
hoping to earn a spread (profit) by closing out the
position in a subsequent trade with another party. By
contrast, a broker is an individual or firm that acts as
an intermediary, putting together buyers and sellers for a
fee or commission. |
|
Dealer: |
An individual or firm acting as a principal, rather than
as an agent, in the purchase and/or sale of securities.
Dealers trade for their own account and risk. |
|
Dealing Board: |
The panel of communications equipment forming part of a
dealer's desk. |
|
Debenture: |
A non-secured loan raised by a company, paying a fixed
rate of interest. |
|
Debt-Service Ratio: |
The ratio of interest and capital repayments as a
percentage of the country's export earnings. The treatment
of public debt varies. |
|
Declaration date: |
The latest day or time by which the buyer of an option
must indicate to the seller his intention to the option. |
|
Deep Discount Bond: |
A bond issued at a very low issue price. Deep discounts
have low coupons offering an investor high principal
return and low interest income. An extreme example is a
zero coupon bond that pays all of its return in principal
on the redemption date. |
|
Default: |
Generally a breach of contract. Failure to make timely
payment of principal or interest. |
|
Defection: |
French term for default. |
|
Deferred months: |
Distant actively trading contract months, also referred to
as back months. |
|
Deficit: |
Shortfall in the balance of trade, balance of payments, or
government budgets. |
|
Deflator |
Difference between real and nominal Gross National
Product, which is equivalent to the overall inflation
rate. |
|
Deflator: |
Difference between real and nominal Gross National
Product, which is equivalent to the overall inflation
rate. |
|
Del credere risk: |
Risk that the counterparty is either unable or unwilling
to fulfill his payment obligations. |
|
Delivery Cut-off |
The point in time that signifies the end of the trade
date. The trade date of any contract entered into after
the daily cut-off shall be the next business day. The
daily cut-off will occur at 5:00 p.m. Eastern time (2:00
p.m. Pacific time). |
|
Delivery date: |
The date of maturity of the contract, when the exchange of
the currencies is made. This date is more commonly known
as the value date in the FX or Money markets. |
|
Delivery month: |
The calendar month in which a futures contract comes to
maturity and becomes deliverable. |
|
Delivery points: |
Those locations designated by futures exchanges at which
the currency represented by a futures contract may be
delivered in fulfillment of the contract. |
|
Delivery Risk: |
A term to describe when a counterparty will not be able to
complete his side of the deal, although willing to do so. |
|
Delivery versus Payment: |
The delivery of and payment for bonds are simultaneous. |
|
Delivery: |
The settlement of a futures contract by receipt or tender
of a financial instrument or currency. |
|
Delta hedging: |
A method used by option writers to hedge risk exposure of
written options by purchase or sale of the underlying
instrument in proportion to the delta. |
|
Delta spread: |
A ratio spread of options established as a neutral
position by using the deltas of the options concerned to
determine the hedge ratio. |
|
Delta: |
The change in the value of the option premium made fully
paid by the capitalization of reserves and given relative
to the instantaneous change in the value of the;
underlying instrument, expressed as a coefficient. |
|
Demand pull: |
Demand led inflation, commonly referred to as too much
money chasing too few goods. |
|
Demo Trading System |
Free interactive online demonstration sub-system of the
actual Delta Stock Trading System available to potential
customers of Delta Stock. |
|
Depo: |
Deposit. |
|
Deport: |
French term for discount. |
|
Deposit Book: |
The net position arising from all deposit and loan
transactions in a given currency. |
|
Deposit dealings: |
Money Market operations. |
|
Deposit money: |
Bank and other giro credit balances which can be converted
at any time into cash although normally used for cashless
payment. |
|
Deposit Swap: |
A series of transactions whereby a deposit for a
particular currency 1, and the proceeds converted via spot
currency into currency 2 . Currency 2 is then lent. To
cover potential exchange movement a forward sale of
currency 2 against currency 1 is entered |
|
Depreciation: |
A fall in the value of a currency due to market forces
rather than due to official action. |
|
Depth of market: |
A measure of how much a price has to move in order to
execute larger than normal transactions. The smaller the
price movement and the larger the transaction, the deeper
the market. |
|
Derivative |
A contract that changes in value in relation to the price
movements of a related or underlying security, future or
other physical instrument. An Option is the most common
derivative instrument. |
|
Derivatives: |
A broad term relating to risk management instruments such
as futures, options, swaps etc.. The contract value moves
in relation to the underlying instrument or currency. The
issue of derivatives and their control following large
losses by banks and corpor |
|
Desk: |
Term referring to a group dealing with a specific currency
or currencies. |
|
Details: |
All the information required to finalize a foreign
exchange transaction, i.e. name, rate, dates, and point of
delivery. |
|
Deutsche Terminboerse: |
The German options and futures exchange, a fully
computerized system with integrated trading and clearing. |
|
Devaluation: |
Deliberate downward adjustment of a currency against its
fixed parities or bands, normally by formal announcement. |
|
Devisen, Devises: |
Foreign exchange in German and French respectively. |
|
Devisenkassamarkt: |
German for spot exchange market. |
|
Devisenterminmarkt: |
German for forward exchange market. |
|
Diagonal (bull or bear) spread: |
The the purchase of a longer maturity option and the sale
of a shorter maturity, lower exercise price option. The
choice of calls or puts will determine its bear or bull
character. |
|
DIBOR: |
Dublin Inter-bank Offered Rate. |
|
Direct quotation: |
Quoting in fixed units of foreign currency against
variable amounts of the domestic currency. |
|
Dirty Float |
Floating a currency when the rate is controlled by
intervention from the monetary authorities. |
|
Dirty Float: |
Floating a currency when the rate is controlled by
intervention by the monetary authorities. |
|
Dirty Price: |
A price of a bond including accrued interest. |
|
Discount Rate: |
The rate at which a bill is discounted. Specifically it
refers to the rate at which a central bank is prepared to
discount certain bills for financial institutions as a
means of easing their liquidity, and is more accurately
referred to as the official di |
|
Discount: |
(1) See forward Rate. Forward rate is lower than spot
rate. (2) an option that is trading for less than its
intrinsic value |
|
Discretionary Income: |
Net of tax and fixed personal spending commitments. |
|
Disposible Income: |
Earnings after tax. |
|
Divergence indicator: |
A concept in the EMS to measure divergence from the
central parity of the currency against the ECU. The
threshhold for intervention for each currency excludes the
currencies weight in the ECU. |
|
DM, DMark: |
Deutsche Mark. |
|
Dollar Rate |
When a variable amount of a foreign currency is quoted
against one US dollar, regardless of where the dealer is
located or in what currency he is requesting a quote. The
exception is the sterling/US dollar rate (cable) which is
quoted as a variable amount of US dollars to one
sterling. |
|
Dollar Value |
The amount of lawful currency of the United States which
at any moment in time would be generated by the conversion
of the relevant foreign currency into US dollars at Delta
Stock’s then-prevailing exchange rates for buying or
selling the foreign currency. |
|
Domestic rates: |
The interest rates applicable to deposits domiciled in the
country of origin. Value and values may vary from
Eurodeposits due to taxation and varying market practices. |
|
Double: |
An option either to buy or sell an instrument or currency
at a specified price. The exercise of the right to sell
causes the right to buy to expire and vice versa. |
|
Down and Out call: |
A call option that expires if the asset price falls below
a predetermined level. |
|
Down tick: |
The sale of a security at a price lower than the previous
one. |
|
DTB: |
abbreviation of Deutsche Terminboerse |
|
Due from Balance: |
US term for " nostro account". |
|
Due to Balance: |
US term for " vostro account". |
|
Dutch Auction: |
A competitive bidding technique where the lowest price to
sell the entire amount of the offered instrument is the
price at which all instruments are sold. A technique used
for some controlled foreign exchange and sovereign debt. |
