Month: June 2016
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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.
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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.
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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.
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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 […]
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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 […]
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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 […]
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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’
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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 […]
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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.
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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 […]
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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.
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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.
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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 […]
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Security Deposit
ResourcesSee AlsoMargin Futures Trading Consumer Protection Consumer Finance
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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 […]