Investment Terms

Investment Terms: A

Accrued Interest: Interest earned between the most recent interest payment and the present date but not yet paid to the lender. Actuals: ...

Investment Terms: B

Balance of Payment: A summary of the international transactions of a country over a period of time including commodity and service transactions, capital transactions, and ...

Investment Terms: C

Calendar Spread: See Interdelivery Spread and Horizontal Spread. Call Option: An option that gives the buyer the right, but not the ...

Investment Terms: D

Daily Trading Limit: The maximum price range set by the exchange each day for a contract. Day Traders: Speculators who take positions in futures or options contracts and ...

Investment Terms: E

Econometrics: The application of statistical and mathematical methods in the field of economics to test and quantify economic theories and the solutions to economic problems....

Investment Terms: F

Face Value: The amount of money printed on the face of the certificate of a security; the original dollar amount of indebtedness incurred. Federal ...

Investment Terms: G

Gamma: A measurement of how fast delta changes, given a unit change in the underlying futures price. GIM Membership (CBOT): A Chicago ...

Investment Terms: H

Hedger: An individual or company owning or planning to own a cash commodity corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc. and concerned that the cost of ...

Investment Terms: I

IDEM Membership (CBOT): A Chicago Board of Trade membership of trading privileges for futures contracts in the index, debt, and energy markets category (gold, municipal ...

Investment Terms: L

Lagging Indicators: Market indicators showing the general direction of the economy and confirming or denying the trend implied by the leading indicators. Also referred to ...

Investment Terms: M

Maintenance Margin: A set minimum margin (per outstanding futures contract) that a customer must maintain in his margin account. Managed ...

Investment Terms: N

National Futures Association (NFA): An industrywide, industry-supported, self-regulatory organization for futures and options markets. The primary responsibilities of the ...

Investment Terms: O

Offer: An expression indicating one's desire to sell a commodity at a given price; opposite of bid. Offset: Taking a second futures or ...

Investment Terms: P

P&S (Purchase and Sale) Statement: A statement sent by a commission house to a customer when his futures or options on futures position has changed, showing the number of ...

Investment Terms: R

Range (Price): The price span during a given trading session, week, month, year, etc. Reciprocal of European Terms: One method of quoting ...

Investment Terms: S

Scalper: A trader who trades for small, short-term profits during the course of a trading session, rarely carrying a position overnight. Secondary ...

Investment Terms: T

Technical Analysis: Anticipating future price movement using historical prices, trading volume, open interest, and other trading data to study price patterns. ...

Investment Terms: U

Underlying Futures Contract: The specific futures contract that is bought or sold by exercising an option. U.S. Treasury Bill: A short-term ...

Investment Terms: V

Variable Limit: According to the Chicago Board of Trade rules, an expanded allowable price range set during volatile markets. Variation Margin:<...

Investment Terms: W-Z

Warehouse Receipt: Document guaranteeing the existence and availability of a given quantity and quality of a commodity in storage; commonly used as the instrument of ...