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P

Portfolio trades

Hedging assets in order to reduce price risk.

 

Position

An interest in the market, either long or short, in the form of open contracts. See Open interest

 

Premium

The cost of an option contract.

 

Present value

The current value of a future cash flow discounted at an appropriate interest rate. See Discount factor.

 

Primary market

Market for the placement of new securities such as international, domestic and foreign bond issues. Any subsequent resale or purchase is handled on the secondary market.

 

Principal value

That amount inscribed on the face of a security and exclusive of interest or premium. The amount is the one used in the computation of interest due on such a security.

 

PSBR

The borrowing needs of all public authorities, expressed as Public Sector Borrowing Requirement. However, the UK Treasury also issues Treasury bills to control daily liquidity, which are not considered to be part of government debt issues.

 

Put option

An option that provides the right but not the obligation to sell the underlying.

Q

Quote Vendors

Providers of quoted real-time prices in recognised exchanges, at a fee, by means of electronic transfer.