Trading Glossary

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y   Z  

Warrant

An options contract often sold with another security. For instance, corporate bonds may be sold with warrants to buy common stock of that corporation. Warrants are generally detachable.

Weak form efficiency

A form of pricing efficiency where the price of the security reflects the past price and trading history of the security. Related: Semistrong form efficiency, Strong form efficiency

Weighted-average portfolio yield

The weighted average of the yield of all the bonds in a portfolio.

Wild card option

The right of the seller of a Treasury bond futures contract to give notice of intent to deliver at or before 8:00 p.m. Chicago time after the closing of the exchange (3:15 p.m. Chicago time) when the futures settlement price has been fixed. Related: Timing option

Window contract

A guaranteed investment contract purchased with deposits over some future designated time period (the "window"), usually between 3 and 12 months. All deposits made are guaranteed the same credit rating. Related: Bullet contract

Wire house

A firm operating a private wire to its own branch offices or to other firms, commission houses or brokerage houses.

Writer

The seller of an option.