11 Terms
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Commodity exchange
Industry: Financial services
Add a new termContributors in Commodity exchange
Commodity exchange
Oversold
Financial services; Commodity exchange
A technical opinion that the market price has declined too steeply and too fast in relation to underlying fundamental factors. Rank and file traders who were bearish and short have turned bullish.
In-the-money
Financial services; Commodity exchange
A term used to describe an option contract that has a positive value if exercised. A call at $400 on gold trading at $410 is in-the-money 10 dollars.
Convergence
Financial services; Commodity exchange
A term referring to cash and futures prices tending to come together (i.e., the basis approaches zero) as the futures contract nears expiration.
Variation margin
Financial services; Commodity exchange
During periods of great market volatility or in the case of high-risk accounts, additional margin deposited by a clearing member firm to an exchange.
Dual trading
Financial services; Commodity exchange
Dual trading occurs when: (1) a floor broker executes customer orders and, on the same day, trades for his own account or an account in which he has an interest; or (2) an FCM carries customer ...
Capping
Financial services; Commodity exchange
Effecting commodity or security transactions shortly prior to an option's expiration date depressing or preventing a rise in the price of the commodity or security so that previously written call ...
Warehouse receipt
Financial services; Commodity exchange
Document guaranteeing the existence and availability of a given quantity and quality of a commodity in storage; commonly used as the instrument of transfer of ownership in both cash and futures ...
