EXPOSURE NETTING
Method of hedging currency risk by offsetting exposure in a single currency with exposure in the same or another currency. It aims to reduce a firm’s vulnerability to exchange risk perils. This is especially applicable in the case of a huge company, whose various currency exposures would be administered as a single portfolio, since it won’t be possible and practical to hedge every currency exposure individually. Its exposure netting strategy depends on numerous factors such as the currencies and amounts involved in its payments and receipts, corporate policy on hedging currency risk, and connections between several currencies to which it has exposure, among others.
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Trade or Fade Rule
Options exchange rule introduced to eliminate trade troughs. The rule requires the market maker to match a better deal seen on another market or tr ...
A-B Split
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Cancellation
Notification by a broker advising his or her client that an incorrect exchange deal was conducted and that the activity is being pointed out. For e ...
Kicker Pattern
A two-bar candlestick pattern that signifies change in the direction of the market trend for the price of an asset. The pattern is composed of two ...
UFMI
Up-Front Mortgage Insurance (UFMI) is an insurance premium. It is usually collected at the time of the conception of the loan on Federal Housing Ad ...
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