Options and Futures

Adjusted Futures Price

Understanding the concept of cash-price equivalent is crucial in the world of finance. It refers to the present value of a futures price, determined by multiplying the futures price by the conversion factor of the specific financial instrument, such as a bond or note, that is being delivered. This calculation allows traders to accurately assess the potential profitability of a futures contract. Being familiar with this term will greatly aid in making informed investment decisions.

Related terms

Offset

Understand the meaning and definition of Offset in the context of stock market, trading, and investments.

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Fill-or-Kill

Understand the meaning and definition of Fill-or-Kill in the context of stock market, trading, and investments.

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Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

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Position Trading

Understand the meaning and definition of Position Trading in the context of stock market, trading, and investments.

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Nearby (Delivery) Month

Understand the meaning and definition of Nearby (Delivery) Month in the context of stock market, trading, and investments.

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