What Is a Futures Spread? A futures spread is an arbitrage technique in which a trader takes two positions on a commodity to capitalize on a discrepancy in price. In a futures spread, the trader completes a unit trade, with both a long and short position. Key Takeaways A futures spread is an arbitrage technique
What Is a Futures Strip? A futures strip is the buying or selling of futures contracts in sequential delivery months traded as a single transaction. This is most common in the energy futures market. Key Takeaways Futures strips are the buying or selling of futures contracts in sequential delivery months.They are typically used to lock
What Is a Full-Time Student? A full-time student is a legal tax status that is important for determining dependency exemptions. Full-time status is based on what the individual’s school considers full-time. There are different tax filing requirements required for both the full-time student and parents or guardians who are claiming that student as a dependent
What Is a Fully Amortizing Payment? A fully amortizing payment refers to a type of periodic repayment on a debt. If the borrower makes payments according to the loan’s amortization schedule, the debt is fully paid off by the end of its set term. If the loan is a fixed-rate loan, each fully amortizing payment is
What are Fully Diluted Shares? Fully diluted shares are the total number of common shares of a company that will be outstanding and available to trade on the open market after all possible sources of conversion, such as convertible bonds and employee stock options, are exercised. Fully diluted shares include not only those which are
What Is a Fully Drawn Advance? A fully drawn advance is a type of loan used in Australia. Although they can be customized to suit various needs, fully drawn advances are commonly used as long-term business loans. Key Takeaways A fully drawn advance is a type of long-term loan that is popular in Australia.They are
What Is Fully Funded? Fully funded is a description of a pension plan that has sufficient assets to provide for all the accrued benefits it owes and can thus meet its future obligations. In order to be fully funded, the plan must be able to make all the anticipated payments to both current and prospective
What Is Fully Valued? A fully valued stock is a security whose price, analysts believe, reflects its full and fair value. It is the market’s recognition of the company’s underlying fundamental earnings power and therefore is unlikely to rise further in price, nor to fall much either. If the security’s price does go up from
What Is Fully Vested? Being fully vested means a person has rights to the full amount of some benefit, most commonly employee benefits such as stock options, profit sharing, or retirement benefits. Benefits that must be fully vested benefits often accrue to employees each year, but they only become the employee’s property according to a
What Is a Functional Currency? Popular with multinationals, functional currency represents the primary economic environment in which an entity generates and expends cash. It is the main currency used by a business in its business dealings. Key Takeaways A functional currency is the main currency that a company conducts its business.As companies transact in many currencies
