| 1. | Actuals | See also: Cash Commodity |
| 2. | Aggregation | The policy under which all futures positions owned or controlled by one trader or a group of traders are combined to determine reportable positions and speculative limits. =National More… |
| 3. | Arbitrage | The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy. =National Futures Association |
| 4. | Arbitration | The process of settling disputes between parties by a person or persons chosen or agreed to by them. NFA’s arbitration program provides a forum for resolving futures-related More… |
| 5. | Ask | The price at which a currency pair or security is offered for sale; the quoted price at which an investor can buy a currency pair. This is also known as the 'offer', 'ask More… |
| 6. | Associated Person (AP) | An individual who solicits orders, customers or customer funds on behalf of a Futures Commission Merchant, an Introducing Broker, a Commodity Trading Advisor or a Commodity Pool Operator More… |
| 7. | At-the-Money Option | An option whose strike price is equal—or approximately equal—to the current market price of the underlying futures contract. =National Futures Association |
| 8. | Backwardation | A futures market in which the relationship between two delivery months of the same commodity is abnormal. The opposite of Contango. See also: Inverted Market =National Futures More… |
| 9. | Basis | The difference between the current cash price of a commodity and the futures price of the same commodity. =National Futures Association |
| 10. | Bear Market (Bear/Bearish) | A market in which prices are declining. A market participant who believes prices will move lower is called a “bear.”A news item is considered bearish if it is expected to result in lower More… |
| 11. | Bid | The price at which an investor can place an order to buy a currency pair; the quoted price where an nvestor can sell a currency pair. This is also known as the 'bid price' and More… |
| 12. | Board of Trade | See also: Contract Market =National Futures Association |
| 13. | Bucketing | Directly or indirectly taking the opposite side of a customer’s order into the broker’s own account or into an account in which the broker has an interest, without open and competitive More… |
| 14. | Bull Market (Bull/Bullish) | A market in which prices are rising. A market participant who believes prices will move higher is alled “bull.” A news item is considered bullish if it is expected to result in higher More… |
| 15. | Call Option | An option which gives the buyer the right, but not the obligation, to purchase (“go long”) the underlying futures contract at the strike price on or before the expiration date. More… |
| 16. | Carrying Broker | A member of a futures exchange, usually a clearinghouse member, through which another firm, broker or customer chooses to clear all or some trades. =National Futures Association |
| 17. | Carrying Charge | The cost of storing a physical commodity, such as grain or metals, over a period of time. The carrying charge includes insurance, storage and interest on the invested funds as well as other More… |
| 18. | Cash Commodity | The actual physical commodity as distinguished from the futures contract based on the physical commodity. Also referred to as Actuals. =National Futures Association |
| 19. | Cash Market | A place where people buy and sell the actual commodities (i.e., grain elevator, bank, etc.). See also: Forward (Cash) Contract and Spot =National Futures Association |
| 20. | Cash Settlement | A method of settling certain futures or options contracts whereby the market participants settle in cash (rather than delivery of the commodity). =National Futures Association |
