Investment Terms: D
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This article is from the Investment Terms.
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 liquidate them prior to the close of the same trading day. - Deferred (Delivery) Month:
The more distant month(s) in which futures trading is taking place, as distinguished from the nearby (delivery) month. - Deliverable Grades:
The standard grades of commodities or instruments listed in the rules of the exchanges that must be met when delivering cash commodities against futures contracts. Grades are often accompanied by a schedule of discounts and premiums allowable for delivery of commodities of lesser or greater quality than the standard called for by the exchange. Also referred to as contract grades. - Delivery:
The transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Some futures contracts, such as stock index contracts, are cash settled. - Delivery Day:
The third day in the delivery process at the Chicago Board of Trade, when the buyer's clearing firm presents the delivery notice with a certified check for the amount due at the office of the seller's clearing firm. - Delivery Month:
A specific month in which delivery may take place under the terms of a futures contract. Also referred to as contract month. - Delivery Points:
The locations and facilities designated by a futures exchange where stocks of a commodity may be delivered in fulfillment of a futures contract, under procedures established by the exchange. - Delta:
A measure of how much an option premium changes, given a unit change in the underlying futures price. Delta often is interpreted as the probability that the option will be in-the-money by expiration. - Demand, Law of:
The relationship between product demand and price. - Differentials:
Price differences between classes, grades, and delivery locations of various stocks of the same commodity. - Discount Method:
A method of paying interest by issuing a security at less than par and repaying par value at maturity. The difference between the higher par value and the lower purchase price is the interest. - Discount Rate:
The interest rate charged on loans by the Federal Reserve to member banks. Discretionary Account: An arrangement by which the holder of the account gives written power of attorney to another person, often his broker, to make trading decisions. Also known as a controlled or managed account. - Discretionary Account:
An arrangement by which the holder of the account gives written power of attorney to person, often his broker, to make trading decisions. Also known as a controlled or managed account.
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