Trade debt

Similar financial terms

Day Trade
A trade that is entered into and closed out on the same day.

Traders
Persons who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do that, their objective is to earn the bid/ask spread. Traders can also be of the sort who take proprietary positions whereby they seek to profit from the directional movement of prices or spread positions.

Trade house
A firm which deals in actual commodities.

Trade on top of
Trade at a narrow or no spread in basis points relative to some other bond yield, usually Treasury bonds.

Trade draft
A draft addressed to a commercial enterprise.

Trade date
In an interest rate swap, the date that the counterparties commit to the swap. Also, the date on which a trade occurs. Trades generally settle (are paid for) 1-5 business days after a trade date. With stocks, settlement is generally 3 business days after the trade.

Trade credit
Credit granted by a firm to another firm for the purchase of goods or services.

Trade acceptance
Written demand that has been accepted by an industrial company to pay a given sum at a future date.

Trade
A verbal (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered "done" or final. Settlement occurs 1-5 business days later.

Thinly traded
Infrequently traded.

Terms of trade
The weighted average of a nation's export prices relative to its import prices.

Spot trade
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.

Reversing trade
Entering the opposite side of a currently held futures position to close out the position.

Registered trader
A member of the exchange who executes frequent trades for his or her own account.

Publicly traded assets
Assets that can be traded in a public market, such as the stock market.

Program trades
Also called basket trades, orders requiring the execution of trades in a large number of different stocks at as near the same time as possible.

Pre-trade benchmarks
Prices occurring before or at the decision to trade.

Posttrade benchmarks
Prices after the decision to trade.

Kansas City Board of Trade
The second largest grain exchange in the world, established in 1876. The KBOT was the first exchange to trade stock index (share price index) futures.

Chicago Board of Trade (CBOT)
The CBOT is the largest commodity exchange in the world. Founded in 1848, it accounts for about half of the turnover in futures contracts in the US and the bulk of the world's grain futures trading. The CBOT offers futures contracts in a range of commodities, from pork bellies to long-term US government bonds.

Balance of trade
Net flow of goods (exports minus imports) between countries.

Block trade
A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or a total market value of $200,000 or more.

Counter trade
The exchange of goods for other goods rather than for cash; barter.

X or Cross Trade
A transaction that is not exposed to the public by outcry or usual trading practices. This type of trade is permissible provided it is done in accordance with the rules and regulations of the particular exchange and other regulatory organizations. The letter X can indicate this type of transaction on a ticker tape. It may be also used on a ticket or blotter.

Transfer Trades
Entries made upon the books of futures commission merchants for the purpose of: (a) transferring existing trades from one account to another within the same office where no change in ownership is involved; (b) transferring existing trades from the books of one commission merchant to the books of another commission merchant where no change in ownership is involved. Also called Ex-Pit Transactions.

Overnight Trade
A trade which is not liquidated on the same trading day in which it was established.

Debtors
Amounts owing to the company, including the value of sales made under credit, where settlement or payment from the customer is still awaited.

Unsecured debt
Debt that does not identify specific assets that can be taken over by the debtholder in case of default.

Unfunded debt
Debt maturing within one year (short-term debt).

Total debt to equity ratio
A capitalization ratio comparing current liabilities plus long-term debt to shareholders' equity.

Subordinated debt
Debt over which senior debt takes priority. In the event of bankruptcy, subordinated debtholders receive payment only after senior debt claims are paid in full.

Structured debt
Debt that has been customized for the buyer, often by incorporating unusual options.

Senior debt
Debt that, in the event of bankruptcy, must be repaid before subordinated debt receives any payment.

Secured debt
Debt that, in the event of default, has first claim on specified assets.

Original issue discount debt (OID debt)
Debt that is initially offered at a price below par.

Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-term debt ratio
The ratio of long-term debt to total capitalization.

Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.

Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Debt bomb
A default on debt and obligations by a major financial_institution that disrupts the stability of the economic system.

Debt outstanding subject to limitation
Obligations incurred by the Treasury subject to the statutory limit set by Congress. Until World War 1, a specific amount of debt was authorized for each separate security issue. Beginning with the Second Liberty Loan Act of 1917, the nature of the limitation was modified until, in 1941, it developed into an overall limit on the outstanding Federal debt. The statuatory limit may change from year to year.