7 Terms
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Commodity exchange
Industry: Financial services
Add a new termContributors in Commodity exchange
Commodity exchange
point
Financial services; Commodity exchange
A measure of price change equal to 1/100 of one cent in most futures traded in decimal units. In grains, it is of one cent; in T-bonds, it is one percent of par.
rules
Financial services; Commodity exchange
The principles for governing an exchange. In some exchanges, rules are adopted by a vote of the membership, while regulations can be imposed by the governing board.
vault receipt
Financial services; Commodity exchange
A document indicating ownership of a commodity stored in a bank or other depository and frequently used as a delivery instrument in precious metal futures contracts.
prearranged trading
Financial services; Commodity exchange
Trading between brokers in accordance with an expressed or implied agreement or understanding, which is a violation of the Commodity Exchange Act and CFTC regulations.
trade option
Financial services; Commodity exchange
A commodity option transaction in which the taker is reasonably believed by the writer to be engaged in business involving use of that commodity or a related commodity.
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.
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.
