FAISAL SARWAR

Market maker & Market taker

Trade date
Value date
Settlement date
Long, Short, Short selling & Square
Bid, Offer & Spread
Day trader & position trader
Spot / cash Market
Forward Market
Fixed rate / floating rate

Overnight
Tom-next
Spot-next
Spot-a-week
Next business day
Previous business day
Euro bond / deposit
Yield
Primary market
Secondary market
Coupon / yield
Face value / notional principal


Risk Aversion & Risk Taker
Risk premium
Risk free rate
Opportunity cost
Discount rate
Nominal rate
Effective rate
Repo
Call rate
Clean rate
Market efficiency

Business risk
Financial Risk
Basis risk
Day count convention
Direct rate
Indirect rate
Cross rate
Initial margin
Maintenance margin
Margin call
Variation margin


Spot contract
Forward contract
Future contract
Call option
Put option
American option
European option
Strike price
Exercise price


In the money
Out of the money
At the money
Clearinghouse
Exchange
Over the counter
Arbitrageurs
Hedgers
Speculators
Contango
backwardation