Q-Estimator - GLOSSARY

Q-Estimator

Home Glossary

Glossary
This is the fee payable for the clearing, settlement, and adjustment of executed contracts
This is the fee payable for utilising non-cash collateral to cover initial margin requirements at the Central Counterparty. It is only applicable to non-cash collateral and charged per annum but collected on a monthly basis
This is a unique assigned name indicating details of a contract in alignment with FMDQ Trading and Clearing Systems
This is the rate at which monthly OTC FX Futures contracts are traded on a daily basis
This is the period between the trade date and the expiry date of the derivatives contract. In the OTC FX Futures market, there are sixty (60) monthly contracts at any point in time, whilst in the Exchange-Traded Derivatives market, there are four (4) contract tenors at any point in time
This is total amount or value of OTC FX Futures contracts market participants are willing to purchase at a point in time
This is the total cost incurred when derivatives contracts are purchased on FMDQ-advised trading System. This includes the Exchange and Central Counterparty fees
This is the actual gain/loss earned at the maturity of derivatives transactions, post the deduction of the total cost of hedge
This is a fee payable in arrears to the Central Counterparty on a monthly for the management and administration of executed OTC FX Futures contracts from initiation till expiry
This is the price against which the Futures contract is purchased at execution date
This is the price against which the Futures contract is settled upon expiration
This is the price on the day the valuation of the Futures contract is said to commence
These are standardised derivatives contracts that have interest-bearing financial instruments as their underlying assets, whose values are derived from money market and fixed income products
These are Naira-settled non-deliverable forward contracts where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying currencies (US Dollar and Nigerian Naira) on the maturity/settlement date
This means an investor has purchased a derivatives contract with the expectation of a price increase in the underlying asset market i.e., buyer
This is a fee payable in arrears to the Central Counterparty on a monthly basis for the management and administration of executed Exchange-Traded Derivatives contracts from initiation till expiry
This is the factor for determining the Naira value of each contract and point of price movement
This is a fixing of the US Dollar to Nigerian Naira exchange rate calculated by FMDQ Exchange
This is the total gain/loss earned at the maturity of derivatives contracts. For OTC FX Futures contracts, this means the differential between the OTC FX Futures contract price and the NAFEX rate at settlement date, whilst for Exchange-Traded Derivatives contracts, this means the differential between the final settlement price and the previous day’s price
This means an investor has sold a derivatives contract with the expectation of a price decrease in the underlying asset market i.e., seller
This is the fee payable on the execution of derivatives contracts on the FMDQ-advised System

Should you require further clarification on FMDQ Derivatives market, kindly contact the Derivatives Business Group via email at dbg@fmdqgroup.com or call +234-907-035-9954.

Glossary

This is the fee payable for the clearing, settlement, and adjustment of executed contracts

This is the fee payable for utilising non-cash collateral to cover initial margin requirements at the Central Counterparty. It is only applicable to non-cash collateral and charged per annum but collected on a monthly basis

This is a unique assigned name indicating details of a contract in alignment with FMDQ Trading and Clearing Systems

This is the rate at which monthly OTC FX Futures contracts are traded on a daily basis

This is the period between the trade date and the expiry date of the derivatives contract. In the OTC FX Futures market, there are sixty (60) monthly contracts at any point in time, whilst in the Exchange-Traded Derivatives market, there are four (4) contract tenors at any point in time

This is total amount or value of OTC FX Futures contracts market participants are willing to purchase at a point in time

This is the total cost incurred when derivatives contracts are purchased on FMDQ-advised trading System. This includes the Exchange and Central Counterparty fees

This is the actual gain/loss earned at the maturity of derivatives transactions, post the deduction of the total cost of hedge

This is a fee payable in arrears to the Central Counterparty on a monthly for the management and administration of executed OTC FX Futures contracts from initiation till expiry

This is the price against which the Futures contract is purchased at execution date

This is the price against which the Futures contract is settled upon expiration

This is the price on the day the valuation of the Futures contract is said to commence

These are standardised derivatives contracts that have interest-bearing financial instruments as their underlying assets, whose values are derived from money market and fixed income products

These are Naira-settled non-deliverable forward contracts where parties agree to an exchange rate for a predetermined date in the future, without the obligation to deliver the underlying currencies (US Dollar and Nigerian Naira) on the maturity/settlement date

This means an investor has purchased a derivatives contract with the expectation of a price increase in the underlying asset market i.e., buyer

This is a fee payable in arrears to the Central Counterparty on a monthly basis for the management and administration of executed Exchange-Traded Derivatives contracts from initiation till expiry

This is the factor for determining the Naira value of each contract and point of price movement

This is a fixing of the US Dollar to Nigerian Naira exchange rate calculated by FMDQ Exchange

This means an investor has sold a derivatives contract with the expectation of a price decrease in the underlying asset market i.e., seller

This is the fee payable on the execution of derivatives contracts on the FMDQ-advised System