it is either to be spent or to remain as a cushion. Contingency graph A plot of the net profit to a speculator in currency options under various exchange rate scenarios. Contingency order In the context of general equities, order to buy one security, if the trader can sell another, usually given that certain price limits or conditions reach a certain level. Swap, switch order. Contingent In context of liabilities, those liabilities that do not yet appear on the balance sheet (ie. guarantees, supports, lawsuit settlements). For support or recourse, the trigger may occur at any time in the future. Contingent claim A claim that can be made only if one or more specified outcomes occur. Contingent conversion trigger Used in the context of convertible instruments. The price of the stock must exceed the trigger price before the bond holder can convert to common stock at a pre-established conversion price. The trigger price exceeds the conversion price. In addition, after a certain number of years, the convertible instrument usually specifies that both the conversion price and the contingent conversion trigger will increase every year by, for example, a rate equal to LIBOR. Contingent deferred sales charge (CDSC) The formal name for the load of a back-end load fund. Contingent immunization An arrangement in which the money manager pursues an activebondportfoliostrategy until an adverse investment experience drives the then-available potential return down to the safety net level. When that point is reached, the money manager is obligated to pursue an immunization strategy to lock in the safety-net level return. Contingent order An order which can be executed only if another event occurs; i.e. "sell Oct 45 call 7-1/4 with stock 52 or lower". Contingent pension liability Under ERISA, a firm is liable to its pension plan participants for up to 39% of the net worth of the firm. Contingent Voting Power Enables preferredstockholders to vote when the company fails to satisfy the agreement between itself and the preferred stockholders. Continuous compounding The process of accumulating the time value of money forward in time on a continuous, or instantaneous, basis. Interest is earned constantly, and at each instant, the interest that accrues immediately begins earning interest on itself. Continuous net settlement (CNS) Method of securities clearing and settlement using a clearing house, which matches transactions to securities available, resulting in one net receive or deliver position at the end of the day. Continuous random variable A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable. Contra broker The broker on the buy side of a sell order or the sell side of a buy order. Contract A term of reference describing a unit of trading for a financial or commodityfuture. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange. Contract month The month in which futures contracts may be satisfied by making or accepting a delivery. Contractual Claim An amount that by legal agreement must be paid periodically to the buyer of a security; contractual claim may