Futures and options glossary

Financial plan: A financial blueprint for the financial future of a firm. Financial planning: The process of evaluating the investing and financing options available to 

How options on futures are traded. □ How to resolve futures-related disputes. We have also included a. Glossary at the back of this. Guide for easy reference. A call option gives the buyer of the option the right but not the obligation to buy the underlying futures contract at a specified price. Cash (or spot) price, Also known  Glossary BG Image. Glossary of Stock Market Terms. Clear Search A leading market for trading options and futures on euro money market derivatives. The cost to you to hold an asset, such as an option of futures contract. In the case of options, the cost of carry relates to dividends paid out by the underlying  An option whose strike price is equal, or approximately equal, to the current market price of the underlying futures contract. Average Annual Return (AAR). A 

A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodity. For example, in the case of options on futures contracts, a covered call is a short call position combined with a long futures position. A covered put is a short put position combined with a short futures position.

Options And Futures Glossary: The Most Comprehensive Options And Futures Glossary on the Web. What is Options And Futures?, Options And Futures Trading Dictionary Meaning/Definition and F&Q. This glossary contains definitions of the many terms, phrases and abbreviations used in the world of options trading and is a continual work in progress. To start using the glossary, click on the above alphabetical hyperlink corresponding to the first letter of the term you wish to understand. Buying straddles is a great way to play earnings. For agricultural commodities, these contracts became much more common with the introduction of exchange-traded options on futures contracts, which permit buyers to hedge the price risks associated with such contracts. Minimum Price Fluctuation (Minimum Tick): Smallest increment of price movement possible in trading a given contract. A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodity. For example, in the case of options on futures contracts, a covered call is a short call position combined with a long futures position. A covered put is a short put position combined with a short futures position. For options, any option position having both long options and short options of the same type (put or call) on the same underlying stock or futures contract. For futures, any position involving both long and short futures either with different months on the same commodity, or on two related commodities. Options and futures are both financial products that investors use to make money or to hedge current investments. Both are agreements to buy an investment at a specific price by a specific date.

Commodity Futures Trading Commission (CFTC) Also known as the CFTC, this is the independent governmental organization that oversees futures and options trading in the United States.

A short call or put option position which is covered by the sale or purchase of the underlying futures contract or physical commodity. For example, in the case of options on futures contracts, a covered call is a short call position combined with a long futures position. A covered put is a short put position combined with a short futures position. The simultaneous purchase of cash, futures, or options in one market against the sale of cash, futures or options in a different market in order to profit from a price disparity. Ask price Also called the “offer.” Indicates a willingness to sell a futures or options on futures contract at a given price. As-of trade

Apr 4, 2018 Making sense of hedgers versus speculators, puts versus calls, derivative marketing tools and perspectives on drivers of option premiums.

See Contract Market. Broker A company or individual that executes futures and options orders on behalf of financial and commercial institutions and/or the general  How options on futures are traded. □ How to resolve futures-related disputes. We have also included a. Glossary at the back of this. Guide for easy reference. A bond future can be bought in a futures exchange market and the prices and dates are determined at the time the future is purchased. bond options, The option to  The Platts industry glossary provides definitions for common industry terms in the oil, power, The physical market underlying a futures or options contract. Financial plan: A financial blueprint for the financial future of a firm. Financial planning: The process of evaluating the investing and financing options available to  (3) In trading options, convertible securities, and futures, arbitrage techniques lower price, when the market price of the shares come down in the near future. Convergent Trading futures day trading glossary. Trading Futures and Options on Futures involves substantial risk of loss and is not suitable for all investors.

The simultaneous purchase of cash, futures, or options in one market against the sale of cash, futures or options in a different market in order to profit from a price disparity. Ask price Also called the “offer.” Indicates a willingness to sell a futures or options on futures contract at a given price. As-of trade

An estimate of the price an option should sell at in an efficient market. Mandatory Settlement, Process whereby cash options or futures contracts still open at  Option Terminology. • Index options: Have the index as the underlying. They can be European or American. They are also cash settled. • Stock options: 

For options, any option position having both long options and short options of the same type (put or call) on the same underlying stock or futures contract. For futures, any position involving both long and short futures either with different months on the same commodity, or on two related commodities. Options and futures are both financial products that investors use to make money or to hedge current investments. Both are agreements to buy an investment at a specific price by a specific date. Commodity Futures Trading Commission (CFTC) Also known as the CFTC, this is the independent governmental organization that oversees futures and options trading in the United States.