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Term Definition: # | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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 Stockís 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.

 

Term Definition: # | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

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