Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

econometrics

Financial services; Commodity exchange

The application of statistical and mathematical methods in the field of economics to test and quantify economic theories and the solutions to economic problems.

The area on the trading floor where futures and options on futures contracts are bought and sold. Pits are usually raised octagonal platforms with steps descending on the inside that permit buyers ...

fungibility

Financial services; Commodity exchange

The characteristic of interchangeability. Futures contracts for the same commodity and delivery month are fungible due to their standardized specifications for quality, quantity, delivery date and ...

liquidation

Financial services; Commodity exchange

The closing out of a long position. The term is sometimes used to denote closing out a short position, but this is more often referred to as covering. See Cover.

market-on-close

Financial services; Commodity exchange

An order to buy or sell at the end of the trading session at a price within the closing range of prices. See Stop-Close-Only Order.

stop order

Financial services; Commodity exchange

An order to buy or sell when the market reaches a specified point. A stop order to buy becomes a market order when the futures contract trades (or is bid) at or above the stop price. A stop order to ...