Trading Terms Glossary

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.


ABCDEFGHIJKLMNOPQRSTUVWXYZ


A

Abandon

Access

Accrued Interest

Actuals

Add on Method

Adjusted Futures Price

Adjusted Total Equity

Aggregation

All Could

Allowances

Alternate Delivery Procedure

Approved Delivery Facility

Arbitrage

Arbitration

Ask

Ask Size

Assignment

Associated Person

At the Market

At the Money Option


B

Back Months

Backwardation

Balance of Payments

Bar Chart

Base Currency

Basis

Basis Grade

Bear

Bear Market

Bear Spread

Bid

Bid Size

Book Entry Securities

Break

Bretton Woods Agreement

Broker

Bull

Bull Market

Bull Spread

Bust

Butterfly Spread

Buy

Buy In

Buy On Close

Buy On Opening


C

Cabinet Trade

Call

Call Option

Cancel

Cancel Order

Car

Carrying Broker

Carrying Charge

Carryover

Cash Commodity

Cash Contract

Cash Market

Cash Settlement

Central Bank

Certificate of Deposit

Certified Stocks

Charting

Cheapest to Deliver

Circuit Breaker

Clear

Cleared Funds

Clearing Margin

Clearing Member

Clearinghouse

Clerk

Close

Closing Price

Closing Range

COM Membership

Commercial

Commercial Stocks

Commission

Commission House

Commitment

Commodity

Commodity Exchange Act

Commodity Futures Modernization Act of 2000

Commodity Futures Trading Commission

Commodity Pool

Commodity Pool Operator

Commodity Trading Advisor

Confirmation Statement

Consumer Price Index

Contango

Contract

Contract Grade

Contract Market

Contract Month

Convergence

Conversion Factor

Cost and Freight

Cost insurance and freight

Cost of Carry

Counter Trend Strategy

Counterparty

Coupon

Cover

Covered Option

CQG

Crop Marketing Year

Crop Reports

Cross Hedging

Cross Rate

Crush Spread

Current Yield

Customer Margin

Customer Segregated Funds


D

Daily Trading Limit

Day Order

Day Trader

Day Trading

Dealer

Debit Balance

Deck

Default

Deferred Delivery Month

Deferred Futures

Delayed Quotes

Deliverable Grades

Delivery

Delivery Commitment

Delivery Month

Delivery Notice

Delivery Points

Delivery Price

Delta

Derivative

Designated Self Regulatory Organization

Devaluation

Differentials

Disclosure Document

Discount

Discount Method

Discount Rate

Discretionary Account

Drawdown


E

Econometrics

Electronic Clerk

Electronic Order

Electronic Trading Hours

Emerging CTA

Equilibrium Price

Equity

Established CTA

Eurodollars

European Central Bank

European Terms

European Union

Evening Up

Ex Pit Transactions

Exchange

Exchange for Physicals

Exchange Rate

Exercise

Exercise Price

Expiration

Extrinsic Value


F

Face Value

Fast Market

Federal Funds

Federal Funds Rate

Federal Reserve System

Feed Ratio

Fill

Fill or Kill

Financial Instrument

First Notice Day

Floor Broker

Floor Trader

Foreign Exchange

Forex Futures

Forex Market

Forward

Forward Cash Contract

Full Carrying Charge Market

Fundamental Analysis

Funds Not Cleared

Futures

Futures Commission Merchant

Futures Contract

Futures Exchange

Futures Industry Association


G

Gamma

Give Up

Global Macro Strategy

Globex

Good Thru Date

Good Till Cancelled

Grading Certificate

Grain Terminal

Grantor

Gross Domestic Product

Gross National Product

Gross Processing Margin


H

Haircut

Hedge

Hedger

Hedging

High

Holder

Horizontal Spread


I

In the Money Option

Initial Margin

Interbank Rates

Intercommodity Spread

Interdelivery Spread

Interest Arbitrage

Interest Rate Parity

Intermarket Spread

Intermediate Holding Period

Intermediate Term Time Horizon

Intrinsic Value

Introducing Broker

Inverted Market

Invisible Supply


L

Lagging Indicators

Last

Last Trading Day

Leading Indicators

Leverage

Limit

Limit Move

Limit Order

Limit Price

Limit Up or Down

Linkage

Liquid

Liquidate

Liquidating Value

Liquidation

Liquidity

Loan Rate

Local

Long

Long Hedge

Long Option Value

Long Term Holding Period

Long Term Time Horizon

Long the Basis

Lot

Low


M

Maintenance Margin

Managed Account

Managed Futures

Margin

Margin Call

Mark to Market

Market if Touched

Market Maker

Market on Close

Market Order

Market Reporter

Maturity

Maximum Price Fluctuation

Minimum Price Fluctuation

Moving Average Charts

Municipal Bonds


N

Naked Option

Narrow Based Stock Index

National Futures Association

Nearby

Net Asset Value

Net Liquidating Value

Net Options Value

Nominal Price

Not Held

Notice Day


O

Offer

Offset

Omnibus Account

One Cancels Other

OPEC

Open

Open Interest

Open Market Operation

Open Order

Open Outcry

Open Trade Equity

Opening Price

Opening Range

Option

Option Buyer

Option Contract

Option Premium

Option Seller

Option Spread

Or Better

Or Better Close Only

Or Better Open Only

Original Margin

Out of the Money Option

Out Trade

Over the Counter

Overbought

Oversold


P

Par

Parity

Partial Fill

Performance Bond

Performance Bond Call

Pips

Pit

Point and Figure Charts

Points

Pool

Position

Position Day

Position Limit

Position Trader

Premium

Price Change

Price Discovery

Price Limit

Price Limit Order

Primary Dealer

Primary Market

Prime Rate

Producer Price Index

Pulpit

Purchase and Sale Statement

Purchasing Hedge

Purchasing Power

Put

Pyramiding


Q

Quotation


R

Rally

Range

Rate

Reaction

Real Time Quotes

Reciprocal of European Terms

Recovery

Registered Representative

Regular Trading Hours

Replace Order

Reportable Positions

Repurchase Agreements

Resistance

Retender

Retracement

Reversal

Reverse Crush Spread

Rollover

Round Turn

Round Turn per Million

Runners


S

Scalp

Scalper

Secondary Market

Securities on Deposit

Security Deposit

Security Deposit Call

Security Futures

Segregated Account

Self Regulatory Organization

Sell Order

Sell Spread

Selling Hedge

Settlement Price

Short

Short Hedge

Short Option Value

Short Selling

Short Squeeze

Short Term Holding Period

Short Term Time Horizon

Simulated Trading

Single Stock Futures

Special Offset

Speculator

Split Fill

Spot

Spot Month

Spot Price

Spread

Spreading

Steer Corn Ratio

Stock Index

Stock Market

Stop

Stop Close Only

Stop Limit

Stop Open Only

Stop with Limit

Straddle

Strangle

Streaming Quotes

Strike Price

Support

Swap

Switching

Systematic


T

Technical Analysis

Technical Rally

Tick

Time and Sales

Time Limit Order

Time Stamped

Time Value

To Arrive Contract

Too Late to Cancel

Total Equity

Total Return

Trade Balance

Trade Order Processing System

Trailing Stop Order

Trend

Trendline

Two Way Price


U

Unable

Uncovered Option

Underlying Futures Contract

US Treasury Bill

US Treasury Bond

US Treasury Note


V

Variable Limit

Variation Margin

Vertical Spread

Volatility

Volume


W

Warehouse Receipt

Web OE

Whipsaw

Writer


Y

Yield

Yield Curve

Yield to Maturity

RJO Futures | 222 South Riverside Plaza, 9th Floor | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.