||The act of an option holder in electing not to exercise or offset an option.
||Traders who ordinarily deal in more than one contract are said to accumulate contracts when they add to their original position by adding more of the same contract as favourable opportunities arise.
||Actual physical commodities or instruments as distinguished from futures or options contracts.
||The discounts (premiums) allowed for grades or locations of a commodity lower (higher) than the par (or basis) grade or location specified in the futures contract. See Differentials.
||The yearly report of a corporation's financial condition. It includes a balance sheet, income statement, and other descriptive information of interest to investors.
||A departure from the accepted norm. Traders talk of anomalies in the yield curve when they mean imperfections in the shape of the curve. Pricing anomalies can emerge between markets or between securities when there is a departure from their normal prices.
||A hedging strategy that involves taking a futures position in anticipation of a later cash transactions.
||Approved Delivery Facility
||Any bank, stockyard, mill, store, house, plant, elevator or other depository that is authorized by an exchange for the delivery of commodities tendered on futures contracts.
||The execution of a trade conducted from a trading desk to the trading pit by the use of hand signals as opposed to the traditional method of having a runner carry a copy or the order to the pit broker.
||Simultaneous purchase of cash commodities or futures in one market against the sale of cash commodities or futures in the same or a different market to profit from a discrepancy in prices. Also includes some aspects of hedging. See Spread, Switch.
||A method of settling disputes. The parties present their arguments to a panel of one or more arbitrators who will render a decision. There are no appeals from arbitration.
||An option whose payoff depends on the average price of the underlying asset during some portion of the life of the option.
||The price at which a trader or traders are willing to sell.
||Anything of value owned by a company or individual. Assets include cash, investments, and physical property.
||One which allows the holder to convey his rights to a third party. Exchange-traded contracts are not assignable.
||The process by which the seller of an option is notified of the buyer's intention to exercise.
||A person associated with any futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator or leverage transaction merchant as a partner, officer, employee, consultant, or agent. Also, any person occupying a similar status or performing similar functions, in any capacity that involves: (a) the solicitation or acceptance of customers orders, discretionary accounts, or participation in a commodity pool (other than in a clerical capacity); or (b) the supervisio
||At the market
||Orders to buy or sell ‘at the market’ involve a prompt execution of the order when it reaches the trading floor, at the best possible price.
||At the money
||Where the underlying asset is trading at the same level or very close to the strike (exercise) price.