Month: June 2016

  • Offer

    Concept of Offer in Futures TradingIn this context of financial law, the following is a definition of Offer: An indication of willingness to sell at a given price; opposite of bid, the price level of the offer may be referred to as the ask.

  • Public

    Concept of Public in Futures TradingIn this context of financial law, the following is a definition of Public: In trade parlance, non-professional speculators as distinguished from hedgers and professional speculators or traders.

  • Fundamental Analysis

    Concept of Fundamental Analysis in Futures TradingIn this context of financial law, the following is a definition of Fundamental Analysis: Study of basic, underlying factors that will affect the supply and demand of the commodity being traded in futures contracts. See Technical Analysis.

  • Exempt Commodity

    Concept of Exempt Commodity in Futures TradingIn this context of financial law, the following is a definition of Exempt Commodity: The Commodity Exchange Act defines an exempt commodity as any commodity other than an excluded commodity or an agricultural commodity. Examples include energy […]

  • Made Available to Trade

    Concept of Made Available to Trade in Futures TradingIn this context of financial law, the following is a definition of Made Available to Trade: Swaps trades that are subject to the clearing mandate, and that have been “Made Available to Trade” by a DCM or SEF must be executed on a […]

  • Attachment Point

    Concept of Attachment Point in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A defined point at which the level of losses in the underlying portfolio reduces the notional of a tranche. For example, the notional in a tranche with an […]

  • Opening

    Concept of Opening in Futures TradingIn this context of financial law, the following is a definition of Opening: The period at the beginning of the trading session officially designated by the exchange during which all transactions are considered made ‘at the opening’

  • Hedge Fund

    Concept of Hedge Fund in Futures TradingIn this context of financial law, the following is a definition of Hedge Fund: A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically […]

  • Round Turn

    Concept of Round Turn in Futures TradingIn this context of financial law, the following is a definition of Round Turn: A completed transaction involving both a purchase and a liquidating sale, or a sale followed by a covering purchase.

  • Designated Contract Market

    Concept of Designated Contract Market (DCM) in Futures TradingIn this context of financial law, the following is a definition of Designated Contract Market (DCM): A board of trade or exchange designated by the CFTC to trade futures, swaps, and/or options under the CEA. A contract market can […]

  • Reversal

    Concept of Reversal in Futures TradingIn this context of financial law, the following is a definition of Reversal: A change of direction in prices. See Reverse Conversion.

  • Commodity Index

    Concept of Commodity Index in Futures TradingIn this context of financial law, the following is a definition of Commodity Index: An index of a specified set of (physical) commodity prices or commodity futures prices.

  • Transferable Option

    Concept of Transferable Option (or Contract) in Futures TradingIn this context of financial law, the following is a definition of Transferable Option (or Contract): A contract that permits a position in the option market to be offset by a transaction on the opposite side of the market in the […]

  • Security Deposit

    ResourcesSee AlsoMargin Futures Trading Consumer Protection Consumer Finance

  • Commodity Credit Corporation

    Concept of Commodity Credit Corporation in Futures TradingIn this context of financial law, the following is a definition of Commodity Credit Corporation: Commodity Credit Corporation: A government-owned corporation established in 1933 to assist American agriculture. Major operations include […]