TIMEBARGAIN Meaning and
Definition
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A timebargain refers to a contractual agreement entered into between two parties, typically speculators or investors, concerning the future delivery of a particular security, commodity, or financial instrument. This derivative contract differs from regular futures contracts as it does not involve an exchange of the underlying asset at the time of the agreement but rather at a future date.
In a timebargain, the buyer and seller agree upon the terms of the transaction, including the price, quantity, and settlement date, which is usually stated in the future, such as three months or six months from the agreement date. The purpose of a timebargain is to speculate on the future price movement of the underlying asset and potentially profit from it.
Unlike futures contracts, timebargains are often settled in cash rather than requiring physical delivery of the asset. Upon the agreed settlement date, the two parties compare the predetermined price with the current market value of the underlying asset. If the market price has moved in favor of the buyer, the seller pays the buyer the difference. Conversely, if the market price has moved against the buyer, they pay the seller the difference.
Timebargains are commonly used in financial markets, especially in options trading, where speculators and traders aim to capitalize on price fluctuations without acquiring the physical assets. It enables investors to gain exposure to various financial instruments without having to own them outright, providing a flexible and efficient instrument for risk management and profit-making opportunities.
Common Misspellings for TIMEBARGAIN
- rimebargain
- fimebargain
- gimebargain
- yimebargain
- 6imebargain
- 5imebargain
- tumebargain
- tjmebargain
- tkmebargain
- tomebargain
- t9mebargain
- t8mebargain
- tinebargain
- tikebargain
- tijebargain
- timwbargain
- timsbargain
- timdbargain
- timrbargain
- tim4bargain
Etymology of TIMEBARGAIN
The word "timebargain" is derived from the combination of two separate words: "time" and "bargain".
1. Time: The word "time" originates from the Old English word "tīma" and can be traced back to the Proto-Germanic word "*tīmô". It is related to the Old Norse word "tími" and the Gothic word "tims". All these words refer to a span or period of time.
2. Bargain: The word "bargain" comes from the Old English word "bargen" or "beorgan", which means "to protect" or "to preserve". In Middle English, it evolved to mean a business transaction or a negotiated agreement.
When combined, "timebargain" refers to an agreement or contract related to a specific period of time, typically used in financial contexts such as stock trading or futures contracts.
