W - Return to Index
WAC - See Weighted Average Coupon.
WAL - See Weighted Average Life.
WAM - See Weighted Average Maturity.
Warehouse Receipt - Is another form of documentation indicating ownership of a commodity at an approved warehouse or storage facility.
Warrant - Is used differently by the securities and commodities industries. In the securities industry, it refers to a derivative instrument which has an expiration date and strike price and other exercise conditions. In the commodities industry, it refers to a receipt indicating ownership of a specific lot of a commodity.
Wash Sale - Is the sale of a security or instrument and the subsequent purchase with no economic interest. It can be motivated by tax or reporting purposes. It is generally deemed to be a sham transaction. It can also be construed as creating fictitious trading activity.
Wash Transaction - See Wash Sale.
Wasting Asset - Is a derivative instrument that may expire worthless after a stated time or event. Options, Rights, and Warrants are three wasting assets.
WCE - Is the Winnipeg Commodity Exchange.
Weakening - Is a hedging or risk management term used to describe the relative loss of value between the underlying market and the hedge vehicle. It suggests that the cash or spot commodity or market is becoming less valuable relative to the futures or forward as defined by the basis.
Weighted Average Coupon - Is the measurement of the gross coupons underlying a Mortgage Backed Security and weighted by outstanding balance of each mortgage.
Weighted Average Life - Is the measurement of a Mortgage Backed Securities time horizon other than maturity. It considers the impact of all principal payments both scheduled and prepaid.
Weighted Average Maturity - Weighted Average Maturity is the mean measurement of the maturity of the underlying collateral weighted by each outstanding balance.
Weighted Spread - Is a strategy placed with more or multiple options bought or sold relative to the other leg. See Ratio Spread and Back Spread.
Weighting - Is the amount of a securityís value relative to a portfolio. The amount committed to a particular asset class, industry or sector.
Western Account - Refers to an divided underwriting account. This compares to the Eastern Account.
Whole Loan - Is a mortgage, either commercial or residential, that has not been securitized.
Widening - Is a term often used in hedging or risk management activities. It refers to an increased spread or price differential between the underlying cash market and the futures market. It can also refer to the differences between two futures contract delivery months or two forward delivery dates.
Wiener Process - Is a type of Markov Stochastic process. It refers to changes in value over small time periods. Sometimes, this process is also called Brownian motion.
Wildcard - Is the unilateral choice of one party to a transaction. For bond futures, the wildcard or seller's option refers to the selection of coupon and allowable maturity to be made against delivery.
Wireability - Refers to securities issued in book-entry form and paid for by wire transfer.
Work Out - Is the process to cover a short or liquidate a long position. This activity can be the result of an error transaction, unsold inventory, or closing out a large position.
Wrap or Wrap Accounts - Refer to accounts domiciled at brokerage firms for which the client or beneficial owner of the account pays a fee. This fee is often in lieu of paying commissions at least for a certain level of activity. The amount of the fee structure typcically ranges between 1-2 percent of the assets.
Sometimes, the brokerage firm offers debit/credit cards collateralized by the underlying securities in the account. There may also be check/draft writing privileges.
If transactions are relatively few this may be an expensive way to maintaim an account because the client is charged whether there is activity or not.
Writes - Is the term which represents the granting or initial selling of an option whether it is a put or a call.
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Copyright © 1998-2003 Barkley International Inc. All Rights Reserved. - Page created Tuesday, May 19, 1998 by Oasis Management®. Last Modified on Tuesday, November 12, 2019.