Futures Trading Terms Glossary

PARITY

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.

P

Parity×

An option is said to be trading at parity if the premium at which it is currently trading in the market is exactly equal to its intrinsic value. In other words, time value is zero.