Glossary of Commodities and Futures Terms
All of the jargon of the futures and commodity markets is explained for you here.
Understanding a Margin Call
A margin call usually occurs when a client with a commodity trading account doesn't have sufficent funds in their account to cover the required margin to hold their positions.
Understanding and Recognizing Churning in Trading Commodities
Churning is defined by the NFA as excessive trading of a discretionary account by a person with control of the account for the purpose of generating commissions while disregarding the interests of the customer.
Associated Person
Associated Person is the commodity and futures industry is also commonly called a commodity broker.
At The Money Options
Definition and examples of at-the-money options. An option that has a strike price equal to the price of the underlying futures contract.
Back Months for Commodity Futures
Description of Back Months for Commodity Futures. Back Months are futures delivery months other than the spot or front month.
Bear Market
Bear Market definition and description as it pertains to the commodity and futures markets.
Broker
Definition of a broker in the commodity and futures markets.
Bull Market
Definition and example of a bull market in trading commodities and futures.
Call Option
Definition of a Call Option for trading in the futures and commodity markets.
Commercial
Definition of a commercial entity in the commodity markets.
Commitments of Traders Report
Description of the Commitments of Traders Report that is used in the futures markets.
Expiration Date
Definition of an option expiration date for futures options.
Futures Contract
Description of a futures contract in the futures and commodities markets.
In The Money Options
In the money options for commodities and futures. Covering a definition, description and example of in the money options.
Intrinsic Value for Futures Options
Definition and description of intrinsic value for trading futures options.
Introducing Broker
Introducing Broker works with clients of commodity and futures accounts, but allows a futures Commission Merchant to handle the trading floor operations.
Limit Move in a Futures Contract
Meaning of Limit Up or Limit Down in Futures Contracts. A limit move is teh most a futures contract can move in one day.
Open Interest in Commodities and Futures Contracts
Open Interest is the amount of outstanding futures contracts.
Out Of The Money Options
Out of the money options for commodities and futures. Covering a definition, description and example of out of the money options.
Put Option
Put option definition and uses in trading commodities and futures.
Strike Price
The definition of a strike price in commodities and futures options.
Time Premium in Futures Options
The definition, decsription and an example of time premium in futures and commodity options.
Underlying
Definition of underlying in commodities and futures trading.