DERIVATIVE CONTRACT Definition

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DERIVATIVE CONTRACT is, generally, a financial contract the value of which is derived from the values of one or more underlying assets, reference rates, or indices of asset values, or credit-related events. Derivative contracts include interest rate, foreign exchange rate, equity, precious metals, commodity, and credit contracts, and any other instruments that pose similar risks. See DERIVATIVE.

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CONSORTIUM is an association of companies for some definite purpose.

OFFSET ACCOUNT is an account that is setup for elimination of a long or short position by making an opposite transaction.

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