Glossary of Derivatives Terms – F

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Fair Value
Normally, a term used to describe the worth of an option or futures contract as determined by a mathematical model.

Floor Broker
A broker on the exchange floor who executes the orders of public customers or other investors who do not have physical access to the trading area.

Fundamental Analysis
A method of analysing the prospects of a financial asset by observing macro and micro economic data.  See also Technical Analysis.

Futures Contract
A standardized contract calling for the delivery of a specified quantity of a commodity at a specified date in the future.

 

 

 

 

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