Finance

Glossary – Finance

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There are 21 names in this directory beginning with the letter S.
Scalper
A trader who holds positions for a very short period of time.

Settlement Price
The average of the prices that a contract trades for immediately before the bell signalling the close of trading for a day. It is used in mark-to-market calculations.

Short Hadge
A hedge where a short futures position is taken.

Short Selling
Selling in the market shares that have been borrowed from another investor.

Shout Option
An option where the holder has the right to lock in a minimum value for the payoff at one time during its life.

Spread Option
An option where the payoff is dependent on the difference between two market variables.

Spread Transaction
A position in two or more options of the same type.

Step-up-Swap
A swap where the principal increases over time in a predetermined way.

Stochastic Process
An equation describing the probabilistic behaviour of a stochastic variable.

Stock Dividend
A dividend paid in the form of additional shares.

Stock Index Futures
Futures on a stock index.

Stock Index Option
An option on a stock index.

Stock Option
An option on a stock.

Straddle
A long position in a call and a put with the same strike price.

Strangle
A long position in a call and a put with different strike prices.

Strap
A long position in two call options and one put option with the same strike price.

Stress Testing
Testing of the impact of extreme market moves on the value of a portfolio.

Strip
A long position in one call option and two put options with the same strike price.

Swap Rate
The fixed rate in an interest rate swap that causes the swap to have a value of zero.

Swaption
An option to enter into an interest rate swap where a specified fixed rate is exchanged for floating.

Systematic Risk
Risk that cannot be diversified away.
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