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Q: please define a "back fee"

Category: glossary , Asked by: B. Weber from Canada

A: the "back fee " is The premium charged upon the second term or portion of a compound option. In other words, the back fee is the fee paid by the owner of a compound option to the owner of the underlying option when the compound option is exercised. Visit MoneyForex

    what is a "hedgelet"?

    Category: glossary by Z. Lawson from Monte-Carlo, Monaco

    A simplified derivative instrument that allows investors to hedge or speculate on economic events such as housing prices, commodity prices, interest rates, currencies and economic indicators. The price for a hedgelet contract is based on the prevailing market price determined by participants in the market. Every contract has the same defined payout scheme: $10 for a correct contract and $0 for an incorrect one. Each hedgelet contract is set so that investors must make a decision on whether an economic event will occur or not occur. For example, on a "Crude Oil > $64" contract an investor can either choose Yes (oil will be more than $64 at expiration) or No (oil will be less than $64 at expiration). If the investor purchases one Yes "Crude Oil > $64" contract for $2, and crude oil ends at $80 when the contract expires, the investor will receive $10 - an $8 profit. However, if the price of crude oil ends at less than $64, the contract will be worthless and the investor will lose the initial $2 investment.

    please define "term out"

    Category: glossary by Aubrie F. From Aachen, Germany

    the "term out " is The transfer of debt within a company's balance sheet without acquiring new debt. This is done through the capitalization of short-term to long-term debt. By changing the characteristic of debt on the balance sheet, companies can improve their working capital situation as well as take advantage of lower interest rates, based upon the projection that they will rise in the future.

    please tell me what the "real estate mortgage investment conduits - rEMIC" is

    Category: glossary by Z. J. From United States

    a "real estate mortgage investment conduits - rEMIC " is A complex pool of mortgage securities created for the purpose of acquiring collateral. This base is then divided into varying classes of securities backed by mortgages with different maturities and coupons. As a synthetic investment vehicle, REMICs consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities.

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    please tell me what an "income basket" is
    "income basket " is Categories for which various sources of income are allocated based on United States tax regulations. Each basket has a net gain or loss, which may not be applied to any other basket as a means to reduce taxable gains. For example, let's look at a situation where you have a net loss in one income basket, with an equivalent net gain in another. Ignoring baskets, your net income is $0, as the loss offsets the gain, meaning you will not have to pay any taxes. However, because U.S. Tax code specifies that baskets can't overlap, the net loss cannot be applied to the net gain. Unfortunately, you will have to pay any applicable income taxes on the basket with a net gain. Visit Easy Forex

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