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Roll down |
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Roll downTo move to an option position with a lower exercise price.Roll down Similar MatchesRolling of FuturesRolling of FuturesAs financial futures have short-term maturities, often 3-9 months, before or at maturity, the future must be sold and a new future (for the same asset but with a new maturity) must be repurchased. RolloverRolloverThe transferring of funds from one investment to another such as rolling over the proceeds from a bond which has matured into another bond, or the rolling over of the proceeds of a share sale into a tax-efficient investment vehicle like a Venture Capital Trust.The term used when a borrower obtains authority from a bank to delay a principal payment on a loan.The movement of a futures or options position from one delivery/expiry month to a further dated month by trading out of the existing position and simultaneously trading into the further dated month. Rolling settlementRolling settlementSettlement is the process by which investors pay for shares they have bought and receive payment for shares they have sold. Before July 1994, this process was done by means of an 'account period', normally ten working days. All the transactions during that period were balanced against each other to produce a single figure, which was either paid to the investor or due from him, depending on whether the value of his purchases was higher or lower than the value of his sales in the period. One of the features of the account period was that transactions taking place at the beginning of it (say, Day 1) didn't have to be settled until about 14 days later, whereas transactions at the end (say Day 10) had to be settled within 4 days.In July 1994, the account period system was replaced by ten day (T+10) rolling settlement, which means that each transaction has to be settled ten days after the transaction date. This was subsequently reduced to five days (T+5) and in February 2001 was reduced to three days (T+3).These significance of rolling settlement and of shortened settlement times is that when investors sell shares, the proceeds get paid into their account quicker, and when they buy shares they have to pay for them quicker. It requires careful money management on the part of the investor. Controlled commoditiesControlled commoditiesCommodities regulated by the Commodities Exchange Act of 1936 in order to prevent fraud and manipulation in commodities futures markets. Rolls CritiqueRolls CritiqueThat the CAPM holds by construction when performance is measured against a mean-variance efficient index; otherwise, it holds not at all. Attributable to Richard Roll in 1977. Further SuggestionsRoll upDollar roll Dividend rollover plan Rollover IRA Roll order Controlled disbursement Roll, Richard Comptroller of the Currency Rollover Controlled foreign corporation (CFC) Rollback Roll over Risk controlled arbitrage rollover relief Direct rollover Roll forward Dividend trade roll or play |
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