| A | B |
|---|
| interest rate futures | Financial futures contracts on debt securities such as Treasury bills/notes/bonds. |
| financial futures contract | Standardized agreement to deliver or receive a specified amount of a specified financial instrument at a specified price and date. |
| Position traders | Traders of financial futures contracts who maintain their futures positions for relatively long periods (such as weeks or months) before closing them out. |
| stock index futures | Financial futures contracts on stock indexes. |
| Speculators | Those who take positions to benefit from future price movements. |
| Day traders | Traders of financial futures contracts who close out their contracts on the same day that they initiate them. |
| Hedgers | Participants in financial futures markets who take positions in contracts to reduce their exposure to risk |
| long hedge | The purchase of financial futures contracts to hedge against a possible decrease in interest rates. |
| credit risk | The risk of loss that will occur when a counterparty defaults on a contract. |
| currency futures contract | Standardized contract that specifies an amount of a particular currency to be exchanged on a specified date and at a specified exchange rate. |
