Investment Terms: D
This article is from the Investment
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
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
- 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
- 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.
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.
Price differences between classes,
grades, and delivery locations of various stocks of the same
- 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