Commodity exchange

Commodity exchange

Industry: Financial services

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Contributors in Commodity exchange

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Commodity exchange

dealer/merchant (ad)

Financial services; Commodity exchange

A large trader that declares itself a “Dealer/Merchant” on CFTC Form 40,which provides as examples “wholesaler, exporter/importer, shipper, grain elevator operator, crude oil marketer.”

proprietary trading group

Financial services; Commodity exchange

An organization whose owners, employees, and/or contractors trade in the name of accounts owned by the group and exclusively use the funds of the group for all of their trading activity.

over-the-counter (OTC)

Financial services; Commodity exchange

The trading of commodities, contracts, or other instruments not listed on any exchange. OTC transactions can occur electronically or over the telephone. Also referred to as Off-Exchange.

historical volatility

Financial services; Commodity exchange

A statistical measure of the volatility (specifically, the annualized standard deviation) of a futures contract, security, or other instrument over a specified number of past trading days.

Tokyo interbank offered rate (TIBOR)

Financial services; Commodity exchange

A daily reference rate based on the interest rates at which banks offer to lend unsecured funds to other banks in the Japan wholesale money market (or interbank market).

order book

Financial services; Commodity exchange

A market structure, electronic or through other means of communication, whereby bids and offers are matched exclusively based on their price and/or the time that they arrived at the market.

automatic exercise

Financial services; Commodity exchange

A provision in an option contract specifying that it will be exercised automatically on the expiration date if it is in-the-money by a specified amount, absent instructions to the contrary.