A trader who trades for small, short-term profits during the course of a trading session, rarely carrying a position overnight.

Market where previously issued securities are bought and sold.

Common or preferred stock; a bond of a corporation, government, or quasi- government body.

Selling futures contracts to protect against possible declining prices of commodities that will be sold in the future.

See Settlement Price

The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the next day's price limits, based on each futures and options contract settlement price.

One who has sold futures contracts or plans to purchase a cash commodity. (verb) Selling futures contracts or initiating a cash forward contract sale without offsetting a particular market position.

See Selling Hedge

A market participant who tries to profit from buying and selling futures and options contracts by anticipating future price movements. Speculators assume market price risk and add liquidity and capital to the futures markets.

Usually refers to a cash market price for a physical commodity that is available for immediate delivery.

See Nearby (Delivery) Month.

The price difference between two related markets or commodities.

The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include:

The relationship of cattle prices to feeding costs. It is measured by dividing the price of cattle ($/hundredweight) by the price of corn ($/bushel).

An indicator used to measure and report value changes in a selected group of stocks.

A market in which shares of stock are bought and sold.

A variation of a stop order in which a trade must be executed at the exact price or better. If the order cannot be executed, it is held until the stated price or better is reached again.

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.

The price at which the futures contract underlying a call or put option can be purchased (if a call) or sold (if a put). Also referred to as exercise price

The relationship between product supply and its price

The place on a chart where the buying of futures contracts is sufficient to halt a price decline.

The end of the evening session for specific futures and options markets traded at the Jakarta Futures Exchange.