A Secondary Market is used to describe the market in any financial product that allows investors to sell or buy more of their investment after making the original purchase and may be on exchange or provided by an Issuer on an Over the Counter basis.
Self Funding Instalments
A Self Funding Instalment (SFI) is a type of Instalment. The SFI uses the dividends received to reduce the Final Instalment amount, and interest payments are added to the loan amount annually.
The current market price for the Underlying. The officially determined mid-market price determined daily for securities quoted on exchanges is also referred to as the "fixing price".
The margin between the Bid Price and Offer Price. A narrower spread may be an indication of good liquidity within the Secondary Market.
An Option strategy in which the investor buys a Put and a Call with the same Expiry Date and Exercise Price, on the same Underlying. An investor who expects the underlying to rise or fall, or be volatile may wish to invest in this strategy.
A strangle is similar to a straddle position in that the investor buys a Put and a Call with the same expiry on the same Underlying, but the Strike Price of the Call Option is higher than the Strike price of the Put Option. An investor who expects the underlying to rise or fall, or be volatile may wish to invest in this strategy.
The date at which the Initial Level is fixed.
The price specified in an Option or a Warrant at which the Underlying is bought (in the case of a Call) or sold (in the case of a Put) in the event that the right to buy or to sell is exercised. In the case of Cash Settlement, the Strike Price is used to calculate the amount of the cash payment that is made.
See Cliquet Option.
A debt instrument where the return of the investment is linked to the performance of an Underlying.
A derivative contract under which each party makes periodic payments to the other, the amounts of which are determined with reference to a specified quantity of an Underlying. A common example of a Swap is an interest rate swap, under which one party pays a floating rate of interest on the underlying amount of cash, and the other party pays a fixed rate of interest on the same underlying amount of cash; the interest rate swap can be used to fix an exposure to a fluctuating (or floating) rate of interest. Under a Swap written on an asset such as a parcel of shares, one party pays the amount by which the asset appreciates in value, and the other party pays the amount by which the asset depreciates in value.