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Loan Rate in FUTURES and Options TRADING Market is the AMOUNT LENT per unit of a commodity to farmers.

Loan Rate in Futures and Options Trading Market is the amount lent per unit of a commodity to farmers.

Federal Housing Administration (FHA) in Futures and Options Trading MARKET is a division of the U.S. Department of Housing and Urban DEVELOPMENT that insures residential mortgage LOANS and sets CONSTRUCTION standards.

Federal Housing Administration (FHA) in Futures and Options Trading Market is a division of the U.S. Department of Housing and Urban Development that insures residential mortgage loans and sets construction standards.

Position Trading in Futures and Options Trading MARKET is an APPROACH to trading in which the TRADER EITHER buys or sells contracts and holds them for an EXTENDED period of time.

Position Trading in Futures and Options Trading Market is an approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time.

Hedger in FUTURES and Options Trading Market is an individual or company owning or planning to own a cash commodity-corn, soybeans, wheat, U.S. TREASURY bonds, notes, bills, etc.-and concerned that the cost of the commodity MAY change before either buying or selling it in the cash market. A hedger achieves protection against changing cash prices by purchasing or selling futures contracts of the same or similar commodity and later offsetting that position by selling or purchasing futures CONTRACT of the same quantity and type as the INITIAL transaction.

Hedger in Futures and Options Trading Market is an individual or company owning or planning to own a cash commodity-corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc.-and concerned that the cost of the commodity may change before either buying or selling it in the cash market. A hedger achieves protection against changing cash prices by purchasing or selling futures contracts of the same or similar commodity and later offsetting that position by selling or purchasing futures contract of the same quantity and type as the initial transaction.

FEED RATIO in Futures and Options TRADING Market is a ratio used to EXPRESS the RELATIONSHIP of feeding costs to the dollar value of livestock.

Feed Ratio in Futures and Options Trading Market is a ratio used to express the relationship of feeding costs to the dollar value of livestock.

POSITION Limit in Futures and Options Trading Market is 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.

Position Limit in Futures and Options Trading Market is 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.

Maximum Price FLUCTUATION (futures) in Futures and OPTIONS Trading Market is the maximum amount the contract price can change, up or down, during ONE trading session, as stipulated by EXCHANGE rules.

Maximum Price Fluctuation (futures) in Futures and Options Trading Market is the maximum amount the contract price can change, up or down, during one trading session, as stipulated by Exchange rules.

STOCK Index in Futures and OPTIONS Trading Market is an indicator USED to measure and report VALUE changes in a selected group of stocks. How a particular stock index tracks the market depends on its composition-the sampling of stocks, the weighting of individual stocks, and the method of AVERAGING used to establish an index.

Stock Index in Futures and Options Trading Market is an indicator used to measure and report value changes in a selected group of stocks. How a particular stock index tracks the market depends on its composition-the sampling of stocks, the weighting of individual stocks, and the method of averaging used to establish an index.

Canceling Order in FUTURES and OPTIONS TRADING Market is an order that DELETES a customer's previous order.

Canceling Order in Futures and Options Trading Market is an order that deletes a customer's previous order.

Futures Contract in Futures and Options TRADING Market is a legally binding agreement, made on the trading floor of a futures exchange, to buy or sell a COMMODITY or financial instrument sometime in the future. Futures contracts are STANDARDIZED according to the quality, quantity, and DELIVERY TIME and location for each commodity. The only variable is price, which is discovered on an exchange trading floor.

Futures Contract in Futures and Options Trading Market is a legally binding agreement, made on the trading floor of a futures exchange, to buy or sell a commodity or financial instrument sometime in the future. Futures contracts are standardized according to the quality, quantity, and delivery time and location for each commodity. The only variable is price, which is discovered on an exchange trading floor.

Forward (CASH) CONTRACT in Futures and Options TRADING Market is a cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are PRIVATELY negotiated and are not STANDARDIZED.

Forward (Cash) Contract in Futures and Options Trading Market is a cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures contracts, are privately negotiated and are not standardized.

Wire House in FUTURES and OPTIONS Trading Market is an individual or ORGANIZATION that solicits or accepts orders to BUY or sell futures contracts or options on futures and accepts money or other assets from customers to support such orders.

Wire House in Futures and Options Trading Market is an individual or organization that solicits or accepts orders to buy or sell futures contracts or options on futures and accepts money or other assets from customers to support such orders.

Performance BOND CALL in Futures and Options Trading Market is a demand for additional funds because of adverse PRICE MOVEMENT.

Performance Bond Call in Futures and Options Trading Market is a demand for additional funds because of adverse price movement.

Deferred (Delivery) Month in FUTURES and Options Trading Market is the more distant month(s) in which futures trading is taking PLACE, as DISTINGUISHED from the NEARBY (delivery) month.

Deferred (Delivery) Month in Futures and Options Trading Market is the more distant month(s) in which futures trading is taking place, as distinguished from the nearby (delivery) month.

Loan PROGRAM in Futures and Options Trading Market is A federal program in which the GOVERNMENT lends money at preannounced rates to farmers and allows them to use the CROPS they plant for the UPCOMING crop year as COLLATERAL. Default on these loans is the primary method by which the government acquires stock of agricultural commodities.

Loan Program in Futures and Options Trading Market is A federal program in which the government lends money at preannounced rates to farmers and allows them to use the crops they plant for the upcoming crop year as collateral. Default on these loans is the primary method by which the government acquires stock of agricultural commodities.

In-the-Money Option in Futures and OPTIONS Trading Market is an option having INTRINSIC value. A call option is in-the-money if its strike PRICE is below the current price of the underlying futures contract. A put option is in the money if its strike price is above the current price of the underlying futures contract.

In-the-Money Option in Futures and Options Trading Market is an option having intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contract. A put option is in the money if its strike price is above the current price of the underlying futures contract.

Federal FUND in Futures and Options Trading Market is the fund that MEMBER bank deposits at the Federal Reserve; these FUNDS are loaned by member BANKS to other member banks.

Federal Fund in Futures and Options Trading Market is the fund that member bank deposits at the Federal Reserve; these funds are loaned by member banks to other member banks.

Put OPTION in Futures and OPTIONS Trading Market is an option that gives the option buyer the right but not the obligation to sell or "GO short" the underlying futures contracts at the strike PRICE on or before the expiration date.

Put Option in Futures and Options Trading Market is an option that gives the option buyer the right but not the obligation to sell or "go short" the underlying futures contracts at the strike price on or before the expiration date.

Pulpit in Futures and OPTIONS Trading Market is 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.

Pulpit in Futures and Options Trading Market is 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.

The VARIOUS types of membership in the derivatives market are as follows:

1. Trading Member (TM) - A TM is a member of the derivatives exchange and can trade on his own behalf and on behalf of his clients.
2. CLEARING Member (CM) -These members are permitted to SETTLE their own trades as well as the trades of the other non-clearing members known as Trading Members who have agreed to settle the trades through them.
3. Self-clearing Member (SCM) - A SCM are those clearing members who can CLEAR and settle their own trades only.

The various types of membership in the derivatives market are as follows:

RECIPROCAL of European TERMS in Futures and Options Trading Market is one METHOD of quoting exchange rates, which measured the U.S. DOLLAR value of one foreign currency unit; i.e., U.S. DOLLARS per foreign units.

Reciprocal of European Terms in Futures and Options Trading Market is one method of quoting exchange rates, which measured the U.S. dollar value of one foreign currency unit; i.e., U.S. dollars per foreign units.

Price Limit in FUTURES and Options Trading Market is 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.

Price Limit in Futures and Options Trading Market is 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.

Horizontal Spread in FUTURES and OPTIONS Trading Market is the purchase of either a call or put OPTION and the simultaneous sale of the same type of option with TYPICALLY the same STRIKE price but with a different expiration month.

Horizontal Spread in Futures and Options Trading Market is the purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month.

CASH Contract in Futures and Options Trading MARKET is a SALES agreement for either immediate or FUTURE DELIVERY of the actual product.

Cash Contract in Futures and Options Trading Market is a sales agreement for either immediate or future delivery of the actual product.

Derivative trading in India takes can place either on a separate and INDEPENDENT Derivative Exchange or on a separate SEGMENT of an EXISTING Stock Exchange. Derivative Exchange/Segment function as a Self-Regulatory Organisation (SRO) and SEBI ACTS as the oversight regulator. The clearing & settlement of all trades on the Derivative Exchange/Segment would have to be through a Clearing Corporation/House, which is independent in GOVERNANCE and membership from the Derivative Exchange/Segment.

Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a separate segment of an existing Stock Exchange. Derivative Exchange/Segment function as a Self-Regulatory Organisation (SRO) and SEBI acts as the oversight regulator. The clearing & settlement of all trades on the Derivative Exchange/Segment would have to be through a Clearing Corporation/House, which is independent in governance and membership from the Derivative Exchange/Segment.

OPTION Premium in Futures and Options TRADING Market is the price of an option-the sum of money that the option BUYER pays and the option seller RECEIVES for the RIGHTS granted by the option.

Option Premium in Futures and Options Trading Market is the price of an option-the sum of money that the option buyer pays and the option seller receives for the rights granted by the option.

Holder in FUTURES and OPTIONS Trading Market is the PARTY who purchased an option. Initial Performance Bond The funds REQUIRED when a futures position (or a short options on futures position) is OPENED. Sometimes referred to as Initial Margin.

Holder in Futures and Options Trading Market is the party who purchased an option. Initial Performance Bond The funds required when a futures position (or a short options on futures position) is opened. Sometimes referred to as Initial Margin.

MINIMUM Price Fluctuation in FUTURES and Options Trading Market is the SMALLEST allowable INCREMENT of price movement for a contract.

Minimum Price Fluctuation in Futures and Options Trading Market is the smallest allowable increment of price movement for a contract.

The derivatives member is required to adhere to the code of conduct specified under the SEBI Broker Sub-Broker regulations.

The following conditions stipulations have been LAID by SEBI on the REGULATION of sales practices:

1. Sales Personnel: The derivatives exchange RECOGNIZES the persons recommended by the Trading Member and only such persons are authorized to act as sales personnel of the TM. These persons who represent the TM are known as Authorized Persons.
2. Know-your-client: The member is required to get the Know-your-client form filled by every client.
3. Risk disclosure document: The derivatives member must educate his client on the risks of derivatives by providing a copy of the Risk disclosure document to the client.
4. Member-client AGREEMENT: The Member is also required to enter into the Member-client agreement with all his clients.

The derivatives member is required to adhere to the code of conduct specified under the SEBI Broker Sub-Broker regulations.

The following conditions stipulations have been laid by SEBI on the regulation of sales practices:

Bear SPREAD in a Futures and OPTIONS Trading Market refers to selling the NEARBY contract MONTH and buying the deferred contract to profit from a change in the PRICE relationship.

Bear Spread in a Futures and Options Trading Market refers to selling the nearby contract month and buying the deferred contract to profit from a change in the price relationship.

Suspension in Futures and Options TRADING Market is the END of the evening SESSION for specific futures and options markets TRADED at the CHICAGO Board of Trade.

Suspension in Futures and Options Trading Market is the end of the evening session for specific futures and options markets traded at the Chicago Board of Trade.

U.S. TREASURY Bond in Futures and Options Trading Market is a government-debt SECURITY with a COUPON and original maturity of more than 10 YEARS. Interest is paid semiannually.

U.S. Treasury Bond in Futures and Options Trading Market is a government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.

CROP Reports in FUTURES and Options Trading Market are Reports compiled by the U.S. Department of Agriculture on various agricultural commodities that are released throughout the year. Information in the reports includes estimates on planted ACREAGE, YIELD, and expected production, as well as comparison of production from previous years.

Crop Reports in Futures and Options Trading Market are Reports compiled by the U.S. Department of Agriculture on various agricultural commodities that are released throughout the year. Information in the reports includes estimates on planted acreage, yield, and expected production, as well as comparison of production from previous years.