Trading Glossary

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  • Abandon

    This happens when an option holder chooses not to offset or exercise an option.

  • Access

    Trading platform of The New York Mercantile Exchange’s electronic, that’s available only for futures contract trading during evening hours in the U.S.

  • Accrued Interest

    Interest that is earned between the most recent interest payment and the present date, but has not yet been paid to the lender.

  • Actuals

    These are physical products that have been bought and sold in the spot market.

  • Add on Method

    A method where the interest to be paid is added onto the principal at maturity or interest payment dates.

  • Adjusted Futures Price

    The cash-price equivalent reflected in the current futures price, calculated as futures price times conversion component for certain financial instrument being delivered (such as a note or a bond).

  • Adjusted Total Equity

    AKA: ATE After subtracting any funds, the remainder is not cleared from an account’s total equity.

  • Aggregation

    The combination of all futures positions that are owned or controlled by a group of traders or one trader to determine speculative limits and reportable positions.

  • All Could

    An order that has been only partially executed. This often applies to a limit order that could not completely be filled, due to a lack of interest in buying or selling at that price.

  • Allowances

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

  • Alternate Delivery Procedure

    AKA: ADP A method of contract delivery that allows sellers and buyers to settle delivery commitments, independently of the exchange. Approved Delivery Facility×

  • Approved Delivery Facility

    AKA: ADP A method of contract delivery that allows sellers and buyers to settle delivery commitments, independently of the exchange. Approved Delivery Facility×

  • Arbitrage

    An informal hearing to settle disputes between members, or between members and customers.

  • Ask

    The price at which a party is willing to sell, also known as the offer price.

  • Ask Size

    The number of offered options or futures contracts at a quoted ask price.

  • Assignment

    To make an option seller complete the requirements of the option contract. For a call (put) option, the writer would have to sell (buy) the underlying security at the stated strike price.

  • Associated Person

    AKA: AP Participants in the futures market who’re involved in the facilitation or solicitation of maintaining discretionary accounts, transacting customer orders, or true participation in the futures market.

  • At the Market

    An order to sell or buy at the best price that you can get at the time the order is received. See Market Order.

  • At the Money Option

    An option with a strike price that is equal, or roughly equal, to the present market price of the underlying futures contract.

Risk Disclosure

Trading Futures and forex includes huge risks and isn’t for all investors. An investor may potentially lose the entirety or a lot more than the first-time investment. Risk capital are funds that you can lose while not jeopardizing ones’ lifestyle or financial security. Only risk capital should be used for trading and only those with enough risk capital should think about trading. Past performance doesn’t indicate future results.

Hypothetical Performance Disclosure

Results of Hypothetical performance have a lot of built-in limitations, which some of the below are described. There is no portrayal that any account is likely or will achieve losses or profits similar to those indicated; as a matter of fact, so often, there are strong differences between the actual results and hypothetical performance results achieved subsequently by any specific trading program. Amongst the limitations of hypothetical performance results is that they’re normally prepared with hindsight’s benefit. Moreover, financial risk is not involved in hypothetical trading, and no record of hypothetical trading can fully account for the financial risk impact of actual trading. for example, the capability to endure losses or abide to a specific trading program despite trading losses are material points which also can affect actual trading results negatively. There are numerous other factors related to the markets.

The presentation stated is only for educational purposes and the expressed opinions are only those of the presenter. Every presented trade should be considered hypothetical and should not be expected to be replicated in a live trading account.

Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.