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.



Futures Liquidation – Liquidation is any transaction that offsets or closes out a long or short futures position, it can also be known as an offset. Often times, liquidation is the act of selling off your futures position in exchange for cash. Once you have liquidated you positions for a cash exchange, that cash will then go into your account where you may decide to purchase other contracts or withdraw for personal use. Futures liquidation is different than the more commonly known business liquidation, where a company sells off all assets for a variety of reasons in order to become solvent.