Advertising

Placement

• A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be making a placement.

• A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be making a placement.

 
 Embedded terms in definition
 Eurodollars
 
 Referenced Terms
 Anticipatory hedging: Refers to the Placement of a hedge prior to placement of the actual position. Sometimes, this occurs when a firm knows that it will receive investment funds later that day or week and prefers to hedge numerous potential risks at the earlier date. Similarly, a commodity producer may prefer to hedge prior to the harvest of a crop, production of an energy product or processing a raw material into a deliverable lot.

 Box: Has two primary meanings. It can refer to an options strategy or an operations term. For the later, it is the safe, cabinet, or other physical depository for securities which islocated in the back office. When box refers to an to an options strategy it is the Placement of both a bull and a bear spread. One spread is comprised of puts and the other is comprised of calls. Both spreads have the same expiration. It is an arbitrage technique which self liquidates at expiration. Boxes can be executed as either debit or credit strategies.

 Dual syndicate equity offering: An international equity Placement where the offering is split into two tranches - domestic and foreign - and each tranche is handled by a separate lead manager.

 Error account: Is the destination for the temporary Placement of a trade which was involved in an error transaction. Firms will either take immediate market action to correct the error, or sometimes will keep the position there as they work it out. See Work Out.

 Hedging: Hedging refers to eliminating a risk (or a liability) the bank has.A strategy designed to reduce investment risk using call options, put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.Is the process of protecting a position. It is the Placement of a position to offset an exposed cash or physical market position. Also, see Risk Management.

 
 Related Terms
 Direct placement
Private placement

<< Pivot Plain vanilla >>

Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...

There's a saying among prospectors: "Go out looking for one thing, and that's all you'll ever find." - Robert Flaherty

Advertising



Copyright 2009-2018 GVC. All rights reserved.