Finance

Month: June 2016

  • Directional Trading

    Concept of Directional Trading in Futures TradingIn this context of financial law, the following is a definition of Directional Trading: Trading strategies designed to speculate on the direction of the underlying market, especially in contrast to volatility trading. Disclosure Document: A […]

  • Corner

    Concept of Corner in Futures TradingIn this context of financial law, the following are some alternative definitions of Corner: (a) Securing such relative control of a commodity that its price can be manipulated, that is, can be controlled by the creator of the corner; or (b) in the extreme […]

  • Abandon

    Concept of Abandon in Futures TradingIn this context of financial law, the following is a definition of Abandon: To elect not to exercise or offset a long option position.

  • Construction Factoring

    Definition of Construction FactoringThis is the meaning of Construction Factoring published by Marco Terry: A specialized form of factoring that is designed to work with companies in the construction industry, usually construction subcontractors.

  • Round Lot

    Concept of Round Lot in Futures TradingIn this context of financial law, the following is a definition of Round Lot: A quantity of a commodity equal in size to the corresponding futures contract for the commodity. See Even Lot.

  • Warrant Receipt for Metals

    Concept of Warrant or Warehouse Receipt for Metals in Futures TradingIn this context of financial law, the following is a definition of Warrant or Warehouse Receipt for Metals: Certificate of physical deposit, which gives title to physical metal in an exchange-approved warehouse.

  • SRO

    ResourcesSee AlsoSelf-Regulatory Organization Futures Trading Consumer Protection Consumer Finance

  • GTC

    ResourcesSee AlsoGood ‘Till Canceled Order Futures Trading Consumer Protection Consumer Finance

  • Managed Money Trader

    Concept of Managed Money Trader (MMT) in Futures TradingIn this context of financial law, the following is a definition of Managed Money Trader (MMT): A futures market participant who engages in futures trades on behalf of investment funds or clients. While MMTs are commonly equated with hedge […]

  • Fill

    Concept of Fill in Futures TradingIn this context of financial law, the following is a definition of Fill: The execution of an order.

  • Futures

    ResourcesSee AlsoFutures Contract Futures Trading Consumer Protection Consumer Finance

  • Hard Position Limit

    Concept of Hard Position Limit in Futures TradingIn this context of financial law, the following is a definition of Hard Position Limit: A Speculative Position Limit whose exceedance is a violation of exchange rules and consequently triggers predefined penalties. This is in contrast to a […]

  • Ratio Hedge

    Concept of Ratio Hedge in Futures TradingIn this context of financial law, the following is a definition of Ratio Hedge: The number of options compared to the number of futures contracts bought or sold in order to establish a hedge that is neutral or delta neutral.

  • Market-on-Opening

    Concept of Market-on-Opening in Futures TradingIn this context of financial law, the following is a definition of Market-on-Opening: An order to buy or sell at the beginning of the trading session at a price within the opening range of prices.

  • Pyramiding

    Concept of Pyramiding in Futures TradingIn this context of financial law, the following is a definition of Pyramiding: The use of profits on existing positions as margin to increase the size of the position, normally in successively smaller increments.