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orders at a limited price which are understood to be good for the day unless expressly designated as a open order or “good-till-canceled” order.

The tender and receipt of the actual commodity, or, in the case of agricultural commodities, warehouse receipts covering such commodity, in settlement of a futures contract. Some contracts settle in cash (cash delivery), in which case open position are marked to market on the last day of the contract based on the cash market close.

Specified month within which delivery may be made under the terms of a futures contract.

 A notice of a clearing member’s intention to deliver a stated quantity of a commodity in settlement of a short futures position.

The premiums paid for the grades better than the basis grade and the discounts allowed for grades lower than the basis grades. These differentials are fixed by the contract terms on most exchanges.

Futures contract based on interest-rate instruments (T-bonds. T-bills, etc.) foreign currencies and indexes.

An approach to market forecasting that emphasizes the analysis of factors affecting supply and demand (opposite of technical analysis)

A term used to designate any or all contracts covering the sale of commodities (including financial instruments and cash representing indexes) for future delivery made on an exchange and subject to its rules.

A broker who is permitted to accept orders to buy and sell futures contracts for customers.

Usually limited partnerships for investors who prefer to participate in the futures market by buying shares in a fund managed by professional traders or commodity trading advisors.

A sale of futures contracts to offset the ownership or purchase of the underlying cash commodity in order to protect it against adverse price moves; or, conversely, a purchase of futures contracts to offset the sale of the underlying cash commodity, again for protection against adverse price moves.

Futures contract s based on indexes such as the S&P 500 or value line index. These are cash settlement contracts