Futures Trading Terms Glossary

ALLOWANCES

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

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Allowances×

The discounts (premiums) that a buyer is allowed for the grades or locations of a commodity lower (higher) than the par or basis grade or location specified in the futures. Also called differentials.