D

Day Count Convention

The day count convention is a standardized method for calculating the number of days between two dates in a given year. For financial instruments such as bonds, loans, and derivatives, day count conventions determine the number of days of interest accrual.

Delta

In finance, delta is a measure of how sensitive an option's price is to changes in the underlying asset's price. It is a Greek letter used in options pricing formulas to represent the amount by which the price of an option is expected to change in response to a $1 change in the price of the underlying asset. Delta is typically expressed as a decimal number between 0 and 1 for call options, and between 0 and -1 for put options.

Developed Markets

The developed markets are those with advanced economies and well-developed financial systems. Generally, these countries have high per capita incomes and well-developed financial markets. Japan, the United States, Canada, and Western European countries are examples of developed markets.

Discrete Hedging

Discrete hedging is a risk management strategy that involves taking specific, individual positions in financial instruments to offset losses from other positions. Unlike continuous or ongoing hedging strategies, such as dynamic hedging, discrete hedging involves specific trades in response to specific risks or events. For example, a company might use discrete hedging to protect against a potential loss from an upcoming foreign currency payment by buying a forward contract or currency option. 

Dow Jones

Dow Jones Industrial Average (DJIA) is a U.S. stock market index that consists of 30 large publicly traded companies. Stock market performance is largely influenced by the index, which is generally viewed as a leading indicator.

Dollar DXY Index

A U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") measures the value of the dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trading partners' currencies.

Direct Quotation Direct quotation is where the cost of one unit of foreign currency is given in units of local currency, whereas indirect quotation is where the cost of one unit of local currency is given in units of foreign currency.