Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Settlement or settling price

Financial services; Commodity exchange

The daily price at which the clearing house clears all trades and settles all accounts between clearing members of each contract month. Settlement prices are used to determine both margin calls and ...

Shock absorber

Financial services; Commodity exchange

A temporary restriction in the trading of stock index futures which becomes effective following a significant intraday decrease in stock index futures prices. Designed to provide an adjustment period ...

Puts

Financial services; Commodity exchange

Option contracts which give the holder the right but not the obligation to sell a specified quantity of a particular commodity or other interest at a given price (the "strike price") prior to or on a ...

Retender

Financial services; Commodity exchange

In specific circumstances, some contract markets permit holders of futures contracts who have received a delivery notice through the clearing house to sell a futures contract and return the notice to ...

Transfer trades

Financial services; Commodity exchange

Entries made upon the books of futures commission merchants for the purpose of: (1) transferring existing trades from one account to another within the same office where no change in ownership is ...

Strong hands

Financial services; Commodity exchange

When used in connexion with delivery of commodities on futures contracts, the term usually means that the party receiving the delivery notice probably will take delivery and retain ownership of the ...

Synthetic futures

Financial services; Commodity exchange

A position created by combining call and put options. A synthetic long futures position is created by combining a long call option and a short put option for the same expiration date and the same ...