A Statement sent by a commission house to a customer when his futures or options on futures position ha changed, showing the number of contracts bought or sold, the prices at which the contracts were bought or sold, the gross profit or loss, the c

The face value of a security. For example, a bond selling at par is worth the same dollar amount it was issued for or at which it will be redeemed at maturity.

A government program in which farmers who comply with a voluntary acreage-control program and set aside an additional percentage of acreage specified by the government receive certificates that can be redeemed for government-owned stocks of grain.

The amount of money deposited by both buyer and seller of a futures contract or an options seller to ensure performance of the term of the contract.

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 and sellers of contracts to see each other.

Charts that show price changes of a minimum amount regardless of the time period involved.

A market commitment. A buyer of a futures contract is said to have a long position and, conversely, a seller of futures contracts is said to have a short position.

The first day in the process of making or taking delivery of the actual commodity on a futures contract.

The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange upon which the contract is traded. Also referred to as trading limit.

An approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time

(1) The additional payment allowed by exchange regulation for delivery of higher-than-required standards or grades of a commodity against a futures contract.

The generation of information about "future" cash market prices through the futures markets.

The maximum advance or decline–from the previous day's settlement–permitted for a contract in one trading session by the rules of the exchange. See also Variable Limit.

A customer order that specifies the price at which a trade can be executed.

A designation given by the Federal Reserve System to commercial banks or broker/dealers who meet specific criteria. Among the criteria are capital requirements and meaningful participation in the Treasury auctions.

Market of new issues of securities.

Interest rate charged by major banks to their most creditworthy customers.

An index that shows the cost of resources needed to produce manufactured goods during the previous month.

A raised structure adjacent to, or in the center of, the pit or ring at a futures exchange where market reporters, employed by the exchange, record price changes as they occur in the trading pit

Buyer futures contracts to protect against a possible price increase of cash commodities that will e purchased in the future.

An option that gives the option buyer the right but not the obligation to sell (go "short") the underlying futures contract at the strike price on or before the expiration date.