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Look-Alike Contracts

Look-alike contracts are a cash-settled financial product based on the settlement price of a similar exchange-traded, physically settled futures contract. Look-alike contracts are traded over the counter and they carry no risk of actual physical delivery regardless of the terms of the underlying futures contract.Futures look-alike contracts are regulated by the Commodity Futures Trading Commission (CFTC).

Opening Cross

The opening cross is a method the Nasdaq uses to determine the opening price for an individual share of the stocks that trade on its exchange. This method accumulates data on the buy and sell interest among market participants for a particular security two minutes before the market opens. The Nasdaq makes this information available to all investors.According to Nasdaq, the opening and closing cross processes give all investors access to the same information, and ensures their orders get the same treatment. This brings fairness and transparency into the marketplace. It also efficiently matches buyers and sellers to ensure market liquidity (that is, the ability for investors to find ready purchasers if they need to sell their positions quickly).

Open Market

An open market is an economic system with little to no barriers to free-market activity. An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization, and any other regulations or practices that interfere with free-market activity. Open markets may have competitive barriers to entry, but never any regulatory barriers to entry.

Mean Reversion

The concept of mean reversion is widely used in various financial time series data, including price, earnings and book value. When an asset's current market price is less than its average past price, it's considered attractive for purchase. Conversely, if the current price is above the average, it's expected to fall. Traders and investors use mean reversion for timing of their respective trading and investment strategies.

Distressed Sales

A distress sale—also called a distressed sale—occurs when a property, stock, or other asset must be sold quickly. Distress sales often result in a financial loss for the seller who, for reasons of economic duress, must accept a lower price. The proceeds from these assets are most often used to pay debts or medical expenses or for other emergencies.

Absolute Advantage

Absolute advantage is the ability of an individual, company, region, or country to produce a greater quantity of a good or service with the same quantity of inputs per unit of time, or to produce the same quantity of a good or service per unit of time using a lesser quantity of inputs, than its competitors.Absolute advantage can be accomplished by creating the good or service at a lower absolute cost per unit using a smaller number of inputs, or by a more efficient process.