An agreement of trade.
Contract
Related Terms
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A forward contract is a non-standardized contract between two parties, who enter into an agreement to complete a transaction sometime in the future. The two parties agree today to buy (sell) an...
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A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]
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A repurchase agreement (“repo”) is a short-term secured loan: one party sells securities to another and agrees to repurchase those securities later at a higher price. The securities serve as...
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Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for another. While it is called “foreign” exchange, this is just a relative term. The terms...
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A reverse repurchase agreement (RRP), or “reverse repo“, involves the purchase of securities with the promise to sell them at a higher price at a future date. For the party selling the security...