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Commodity exchange

Contributors in Commodity exchange

Commodity exchange

Spot

Financial services; Commodity exchange

Usually refers to a cash market price for a physical commodity that is available for immediate delivery.

Ratio spread

Financial services; Commodity exchange

This strategy, which applies to both puts and calls, involves buying or selling options at one strike price in greater number than those bought or sold at another strike price.

Point balance

Financial services; Commodity exchange

A statement prepared by futures commission merchants to show profit or loss on all open contracts by computing them to an official closing or settlement price, usually at calendar month end.

Series of options

Financial services; Commodity exchange

Options of the same type (i.e., either puts or calls, but not both), covering the same underlying futures contract or physical commodity, having the same strike price and expiration date.

Wash trading

Financial services; Commodity exchange

Entering into, or purporting to enter into, transactions to give the appearance that purchases and sales have been made, without resulting in a change in the trader's market position.

Pegging

Financial services; Commodity exchange

Effecting commodity transactions to prevent a decline in the price of the commodity so that previously written put options will expire worthless, thus protecting premiums previously received.

Resting order

Financial services; Commodity exchange

An order to buy at a price below or to sell at a price above the prevailing market that is being held by a floor broker. Such orders may either be day orders or open orders.

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