Term
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Definition
| insurance storage interest and other incidental costs |
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Term
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Definition
| not downpayment but a performance bond or earnest money |
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Term
| commoditiy account agreement |
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Definition
| authorizes liquidation of an account w/out notice |
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Term
| Contracts settled in cash |
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Definition
| feeder cattle lean hogs stock indexes and eurodollar time deposits |
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Term
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Definition
buyer - long position
seller - short position |
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Term
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Definition
Buyer - Short position
Seller - Long positions |
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Term
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Definition
| an account with a futures c ommission house in which the transactions and identification of two or more persons are combined and not disclosed |
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Term
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Definition
above market price
made a market order when price is at or above stop
limit losses on short position
establish long position |
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Term
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Definition
placed below mkt price
made mkt order @ or below stop price
limit losses on long position
establish short position |
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Term
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Definition
market if touched
not allowed on CBOT, allowed on CME
lower priority |
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Term
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Definition
below mkt price
establish long position or close short |
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Term
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Definition
above current mkt price
est. short position or close long position |
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Term
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Definition
buy at specific price
dotn move once limit reached
dotn become market |
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Term
| Notation OB necessary when |
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Definition
| the price is already better than the limit price |
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Term
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Definition
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Term
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Definition
| excessive trading to generate commision |
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Term
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Definition
| S&P500 Index, New York Stock Exchange Composite, Value Line Average, Major Market Index, Nikkei 225 Stock Average, |
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Term
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Definition
correlate the price movement of the stocks in the portfolio with the movement of the stock index
Average is 1 so whatever the index decline is, the portfolio would be expected to decline the same amount |
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Term
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Definition
fed funds,
tbills, eurodollar time deposits (25$) |
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Term
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Definition
| t-notes, t-bonds, GNMA's - 31.25 |
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Term
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Definition
aka - intra-market or intra-commodity
spread on same exchange, same commodity, different delivery month |
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Term
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Definition
| same commodity different exhanges |
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Term
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Definition
| 2 different commodities with same delivery month on different exchange |
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Term
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Definition
| long soybean futures with short soybean oil and meal futures... profit if narrows |
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Term
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Definition
| crude oil futures and heating oil and gasoline futures |
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Term
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Definition
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Term
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Definition
calculate per month rather than absolute
divide spread using formula, by number of monts elapsing ex: june/sept spread divide by 3 |
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Term
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Definition
correlation between the movement of the option premium and the price of the underlying futures
delta changes constantly as the option premium changes due to the two components of the premium |
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