Futures trading: refers to a transaction in which the buyer and seller do not deliver immediately after the transaction is completed, but perform delivery procedures according to the transaction price and quantity specified in the contract and after the agreed delivery period. Futures contract: A futures contract is a forward contract or agreement to deliver a certain quantity and quality of a commodity at a certain time in the future. It is reached on the trading floor of an approved exchange and is legally binding. Compared with spot forward contracts, they have a standardized format; they are easy to trade; the proportion of physical delivery is small; and the performance rate is very high. Futures exchanges stipulate standardized quantity, quality, delivery location, and delivery time for futures contracts. As for futures prices, they change with changes in market conditions.
Forward contract: It is a contract signed by the buyer and seller based on the special needs of the buyer and seller.
Swap contract: It is a contract signed by two parties to exchange certain assets in a certain period in the future. To be more precise, he said that a swap contract is a contract signed between parties to exchange cash flows that they believe have equal economic value within a certain period in the future. The more common ones are interest rate swap contracts and currency swap contracts. Futures market: It is a place for futures trading and is the sum of various futures trading relationships. It is a highly organized and highly standardized market form developed on the basis of the spot market in accordance with the principles of “openness, fairness and justice”. It is not only an extension of the spot market, but also another advanced development stage of the market. From the perspective of organizational structure, the futures market in a broad sense includes futures exchanges, clearing houses or clearing companies, brokerage companies and futures traders; the futures market in a narrow sense only refers to futures exchanges.
Futures exchange: It is a place for buying and selling futures contracts and is the core of the futures market. It is a non-profit institution, but its non-profit status only means that the exchange itself does not conduct trading activities. Not aiming to make profits does not mean that it does not pay attention to profit accounting. In this sense, the exchange is also a financially independent for-profit organization that achieves reasonable economic interests on the basis of providing traders with an open, fair and just trading place and effective supervision services, including membership fee income and transaction fees. revenue, information service revenue and other revenue. The set of institutional rules it formulates provides a self-management mechanism for the entire futures market, enabling the principles of “openness, fairness, and impartiality” in futures trading to be realized.
Futures broker: refers to an intermediary organization established in accordance with the law to conduct futures transactions on behalf of customers in its own name and charge a certain handling fee. It is generally called a futures brokerage company.
On-site trading: Also known as exchange trading, it refers to a trading method in which all supply and demand parties are concentrated on the exchange for bidding transactions. This trading method has the characteristics that the exchange collects deposits from trading participants, and is also responsible for clearing and performance guarantee responsibilities.
Over-the-counter trading: also known as over-the-counter trading, refers to a trading method in which both parties to the transaction directly become counterparties. This transaction method has many forms, and products with different contents can be designed according to the different needs of each user.
Listed varieties: refers to the subject matter of futures contract transactions, such as corn, copper, oil, etc. represented by the contract. Not all commodities are suitable for futures trading. Among many physical commodities, generally speaking, only commodities with the following attributes can be listed as futures contracts: First, the price fluctuates greatly. Second, supply and demand are large. Third, it is easy to grade and standardize. Fourth, it is easy to store and transport. According to the types of transactions, futures trading can be divided into two major categories: commodity futures and financial futures. Futures that use physical commodities, such as corn, wheat, copper, cnc milling aluminum, etc., as futures types are commodity futures. Futures that use financial products, such as exchange rates, interest rates, stock indexes, etc., are financial futures. Financial futures generally do not have quality problems, and most delivery uses cash delivery with spread settlement. The main varieties listed in my country include copper, aluminum, soybeans, wheat and natural rubber.
Commodity futures: Commodity futures are futures contracts whose indicators are physical commodities. Commodity futures have a long history and are of various types, mainly including agricultural and sideline products, metal products, energy products, etc. Specifically, there are about 20 kinds of agricultural and sideline products, including corn, soybeans, wheat, rice, oats, barley, rye, pork belly, live pigs, live cattle, calves, soybean meal, soybean oil, cocoa, coffee, cotton, Wool, sugar, orange juice, rapeseed oil, etc. Among them, soybeans, corn, and wheat are known as the three major agricultural product futures: 9 types of metal products, including gold, silver, copper,3d printing aluminum, lead, zinc, nickel, rake, and platinum; chemical industry There are 5 types of products, including crude oil, heating oil, unleaded regular gasoline, and natural rubber; 2 types of forestry products, including wood and plywood. Commodity futures trading: Commodity futures trading is the sale and purchase of “standardized contracts” (i.e. “futures contracts”) that represent specific commodities.
Financial futures: refers to futures contracts with financial instruments as the subject matter. As a type of futures trading, financial futures have the general characteristics of futures trading, but compared with commodity futures, the subject matter of the contract is not physical commodities, but traditional financial commodities, such as securities, currencies, exchange rates, interest rates, etc. Interest rate futures: refers to futures contracts with bond securities as the subject matter, which can avoid the risk of security price changes caused by fluctuations in bank interest rates.
Currency futures: Also known as foreign exchange futures, they are futures contracts with exchange rates as the subject matter, used to avoid exchange rate risks.
Stock index futures: It is a financial futures contract with a stock price index as the underlying object.
Option: Also known as option, options trading is actually the sale of rights. This right means that investors can buy or sell a certain amount of a certain “commodity” to the seller of the option at a predetermined price (called the agreed price) at any time within a certain period, regardless of whether during this period How the price of that “item” changes. The options contract stipulates the term, agreed price, transaction quantity, type, etc. During the validity period, the buyer can freely choose to exercise the right to resell; if it is deemed unfavorable, he can waive this right; after the specified period, the contract will become invalid and the buyer’s option will automatically become invalid. Options are divided into call options and put options. Call option: refers to the right to buy a certain amount of the underlying object at the exercise price during the validity period of the option contract.
Put option: refers to the right to sell the underlying asset at the exercise price during the validity period of the option contract.
Option Buyer: The buyer of a call or put option. The option buyer has the right, but not the obligation, to assume a certain futures position. Also called option holder.
Option seller: A person who earns premiums by selling option contracts and has performance obligations when the option holder requests to exercise his rights. Also called a seller.
European options: refer to options that are only allowed to be executed on the expiration date of the contract. They are used in most over-the-counter transactions.
American options: refer to options that can be executed on any day within the validity period after the transaction, and are mostly used on exchanges.
In-the-money options: Options with intrinsic value. A call option has intrinsic value when its strike price is lower than the then-current market price of the underlying futures contract. A put option has intrinsic value when its strike price is higher than the then-current market price of the underlying futures contract.
Out-of-the-money option: An option with no intrinsic value, that is, a call option with a strike price higher than the current futures price or a put option with a strike price lower than the current futures price.
Interest rate swap transaction: It is an exchange transaction between different types of interest rates of the same currency fund, which is generally not accompanied by the exchange of principal.
Currency swap transaction: refers to the exchange transaction between two currencies. Under normal circumstances, it refers to the principal exchange of funds in two currencies.
Foreign exchange margin trading: refers to a forward foreign exchange trading method between financial institutions and between financial institutions and investors. When trading, traders only pay 1% to 10% of the deposit (margin) to conduct 100% of the transaction amount.
Adjusted futures price: A futures price that is equivalent to the spot price. Calculated by multiplying the futures price by the conversion factor (factor) of a specific financial security (such as a Treasury bill) used for delivery.
Order: A market entry represents a commodity purchase and sale order entered through a computer terminal.
Transaction order: a purchase and sale contract order generated after custom precision high end industrial computer chassis.
Yesterday’s closing price: refers to the last transaction price of the previous trading day.
Opening price: the first transaction price of a commodity on the day.
Closing price: The last transaction price of a commodity on the day.
Highest price: the highest transaction price of a commodity on the day.
Lowest price: the lowest transaction price of a commodity on the day.
Latest price: the latest transaction price of a certain commodity on that day.
Transaction price: refers to the latest transaction price of a certain futures contract.
Settlement price: the weighted average price of all traded contracts of a commodity on the day.
Resistance point: A certain price level that is difficult for the price to exceed.
Support point: Due to the purchase of the contract, it is difficult for the price to fall below a certain price level.
Trading volume: refers to the number of commodity futures contracts bought or sold within a certain period of time, usually the number of contracts traded in a trading day.
Open interest: A certain commodity futures or options contract that has not been hedged by an opposite futures or options contract, nor has physical delivery or fulfillment of an option contract occurred.
Total quantity: also called open interest.
Settlement price: the weighted transaction price.
Weighted volume: The parameters involved when the exchange calculates the settlement price.
Bid price: the current highest declared buying price of a commodity.
Selling price: the current lowest reported selling price of a commodity.
Spread: The price difference between two related markets or commodities.
Volatility: A calculation used to measure price changes over a certain period of time. Usually expressed in percentage points and calculated as the annual standard deviation of daily price changes in percentage points.
Increase or decrease: the price difference between the closing price of a commodity on that day and yesterday’s settlement price.
Limit amount: The maximum price fluctuation range (range) specified by the exchange for each contract on a daily basis.
Price limit: the maximum price that can be entered for a commodity on that day (equal to yesterday’s settlement price + maximum change range).
Lower limit: the lowest price that can be entered for a commodity on that day (equal to yesterday’s settlement price – the maximum change).
Short volume: The total number of futures or options contracts of a certain commodity that have not been offset by opposite futures or options contracts, nor have physical delivery or fulfillment of option contracts occurred.
Trading volume: The number of commodity futures contracts bought or sold within a certain period of time. Trading volume usually refers to the number of contracts traded on each trading day.
Opening a position: There are usually two ways of operating in futures trading, one is to go long (buyer) when the market is bullish, and the other is short (seller) when the market is bearish. Whether it is long or short, placing an order is called “opening a position.”
Close position: buy and then sell, or sell and then buy to settle the new order originally made.
Order number: The unique identifier assigned by the system to the order or transaction order.
Pledge: refers to the member’s application and approval by the exchange to transfer the certificate of rights held by the exchange to the exchange as a guarantee for the performance of the transaction margin debt. The pledge of rights certificates is limited to transaction margin, but losses, expenses, taxes and other amounts must be settled in monetary funds. Position limit system: It is a system in which futures exchanges limit the number of positions held by members and customers in order to prevent excessive concentration of market risks on a small number of traders and prevent market manipulation.
Large account reporting system: It is another system closely related to the position limit system to control transaction risks and prevent large accounts from manipulating the market.
Daily mark-to-market system: refers to a settlement system in which the settlement department calculates and checks the margin account balance after the market closes every day, and issues margin call notices in a timely manner to maintain the margin balance above a certain level and prevent the occurrence of liabilities.
Hedging transactions: Hedging refers to buying (or selling) futures contracts of the same commodity in the futures market with the same quantity in the opposite direction to the spot market, so that no matter how the spot supply market price fluctuates, you can eventually obtain The result of losing money in one market while making profits in another market, and the amount of loss is roughly equal to the amount of profit, thereby achieving the purpose of risk aversion.
Long hedging: Long hedging refers to a futures trading method in which traders first buy futures in the futures market so that they will not cause economic losses to themselves due to price increases when buying in the spot market in the future.
Short hedging: Selling futures contracts to protect against future losses due to falling prices when selling physical commodities. When selling spot commodities, the previously sold futures contract is offset by buying another futures contract with the same quantity, category and delivery month to end the hedging. Also known as selling period hedging.
Hedger: An individual or company that owns or plans to own spot commodities such as corn, soybeans, wheat, government bonds, etc., and is concerned about adverse price changes before actually buying or selling these commodities in the spot market. The hedger buys (sells) a futures contract that is identical to the spot commodity in the futures market, and then sells (buys) another identical futures contract at a certain time in the future to hedge the short contract held in his or her hands. Losses caused by price changes in spot market transactions.
Treasury bond repurchase business: Treasury bond repurchase business means that when the buyer and seller conclude a certain Treasury bond spot transaction, they agree to conduct a reverse transaction at a certain price and the same quantity at a certain time in the future (that is, the original buyer becomes a seller, and the original seller become a buyer). The development of this business is conducive to bond holders and investors to adjust their investment portfolios, and the holding period yield of government bonds is also fully reflected.
Treasury bond futures trading: Treasury bond futures trading refers to a contract transaction in which Treasury bond buyers and sellers reach a contract transaction through public bidding on a trading venue for a standard quantity of specific Treasury bonds to be delivered at a transaction price in a certain period in the future. Due to the growing trend of speculation and chaos in the trading order of treasury bond futures, the China Securities Regulatory Commission decided to suspend the pilot trading of treasury bond futures on May 17, 1995.
Settlement: refers to the business activities that calculate and allocate members’ trading margins, profits and losses, handling fees, delivery payments and other related funds based on transaction results and relevant regulations of the exchange.
Clearing Member: Clearinghouse member of an exchange. This type of membership is usually owned by a company or business. Clearing members are responsible for the financial affordability of customers who clear transactions through their affiliated companies.
Margin: Sometimes also called deposit. In margin trading, buyers and sellers only need to pay a small deposit to the broker. There are two purposes for paying a deposit:
(1) To protect the interests of the brokerage firm, when the customer is unable to pay for any reason, the brokerage firm will compensate with the margin.
(2) To control speculative activities on the exchange. Under normal circumstances, the margin is about 10% of the total value of the contract traded. Judging from the essence of margin, it is a sum of funds paid by traders to the commodity clearing house through a broker, without any interest, to ensure that traders are able to pay commissions and possible losses. But trading margin is by no means a deposit for buying and selling futures. Initial margin: Futures market traders must deposit the minimum amount into their margin account in accordance with regulations when placing an order to buy or sell a futures contract.
Low performance bond.
Clearing margin: A financial guarantee to ensure that a clearing member (usually a company or enterprise) will perform short positions on its customers’ futures and options contracts. The settlement bond is different from the customer performance bond. Customer performance bonds are deposited with brokers, while settlement bonds are deposited with clearinghouses.
Performance bond: A deposit deposited in a trading account by buyers and sellers of futures contracts or sellers of options to ensure performance of a contract. Commodity futures margin is not a payment for a stock, nor is it a deposit paid in advance for trading the commodity, but a deposit of good standing.
Maintenance Margin: Clients must maintain a minimum margin amount in their margin account.
Closing price range: The price range for buy and sell transactions when the market closes.
Delivery settlement price: This is the settlement price on the last trading day of the futures contract. The pricing of delivered commodities is based on the delivery settlement price, plus premiums and discounts for different grades of commodity quality and premiums and discounts between off-site delivery warehouses and benchmark delivery warehouses.
Bullish: A person who expects prices to rise.
Bear: A person who believes that prices will fall.
Bullish news: news that causes market prices to rise.
Bad news: news that causes the market to fall.
Bear market: A market during a period of falling prices.
Bull market: A market during a period of rising prices. Hedging Profit: Buying and selling two related commodities at the same time, hoping to make a profit when hedging the trading position in the future. For example, buying and selling futures contracts of the same commodity but different delivery months; buying and selling futures contracts of the same delivery month and the same commodity but on different exchanges; buying and selling futures contracts of the same delivery month but different commodities. futures contract (but there is an interrelated relationship between the two commodities).
Bear Hedging Profit: A trading method used in most commodity and financial instrument futures, which means selling near-term contracts and buying forward contracts to make profits by taking advantage of changes in related price relationships in different contract months.
Bull market hedging for profit: A futures trading method used for most commodities and financial instruments, which means buying near-term contracts and selling forward contracts to make profits by taking advantage of changes in related price relationships in different contract months.
Butterfly hedging: one of the forms of futures trading. It means doing two cross-delivery month hedging transactions with opposite trading directions but sharing an intermediate delivery month, such as: short 3 March contracts/short 6 June contracts/short 3 September contracts.
Option hedging profit: Buying one or more option contracts and selling one or more option contracts, futures or spot positions at the same time.
Horizontal hedging profit: while buying call or put options, sell options of the same commodity type at the same strike price but different expiration months. Also known as cross-month hedging for profit.
Vertical hedging profit: the trading activity of buying and selling put option contracts or call option contracts with the same expiration month but different strike prices.
Cross-commodity hedging profit: buy a certain commodity futures contract in a given delivery month, and at the same time sell futures contracts in the same delivery month but different commodities. It is also called cross-commodity market hedging to make profits, such as buying July wheat and selling July corn.
Cross-delivery month hedging profit: Buy a given commodity futures contract in a certain delivery month, and at the same time sell futures contracts of the same commodity but different delivery months on the same exchange. Also known as same-market arbitrage, for example, buying July wheat and selling December wheat on the same exchange.
Cross-exchange hedging profit: Sell a futures contract of a given delivery month on one exchange, and at the same time buy a futures contract of the same delivery month and the same type of commodity on another exchange. Take advantage of the price difference between the two markets to make profits, such as selling December wheat futures on the Chicago Board of Trade and buying December wheat futures on the Kansas City Futures Exchange.
Arbitrage: Arbitrage refers to the use of different foreign exchange markets, different currency types, different delivery times, and differences in currency exchange rates and interest rates to buy from the low-priced party and sell from the high-priced party to earn profits from foreign exchange. Buy and sell. Arbitrage can generally be divided into three forms: location arbitrage, time arbitrage and arbitrage. There are two types of location arbitrage. The first is direct arbitrage. Also known as arbitrage between two places, it takes advantage of the difference in the exchange rate of a certain currency in two different foreign exchange markets to simultaneously buy at a low price and sell at a high price in the markets of the two places, thereby earning profits from the exchange rate difference. The second type is indirect arbitrage, also known as three-place arbitrage. When there are exchange rate differences in three or more places, the same currency is used to buy at a low price and sell at a high price at the same time to earn profits from the difference. Time arbitrage, also known as swap trading, is a trading method that combines spot trading and forward buying and selling, with the purpose of preserving value. Generally, two spot and forward transactions are conducted simultaneously between two fund owners to avoid risks caused by exchange rate changes. Arbitrage, also known as interest arbitrage, is the use of interest rate differences in the foreign exchange markets of two countries to transfer short-term funds from the low-interest market to the high-interest market, thereby earning interest income.
Arbitrage: A trading technique that can be used by speculators or hedgers, that is, buying spot or futures commodities in one market and selling the same or similar commodities in another market, hoping that the two transactions will produce a profit from the price difference. profit.
Speculative trading: refers to futures trading in the futures market for the purpose of obtaining price difference income. Speculators make buying or selling decisions based on their own judgment of the futures price trend. If this judgment is the same as the market price trend, the speculator can obtain speculative profits after closing the position; if the judgment is opposite to the price trend, Then the speculators will bear the speculative losses after closing their positions and exiting the market.
Market manipulation: refers to institutions and large investors participating in market transactions deliberately violating the relevant national futures trading regulations and exchange trading rules in order to make huge profits, and violate the principles of openness, fairness and impartiality in the futures currency market. Individually or in collusion using unfair means to seriously distort futures market prices and disrupt market order.
Short buying: Believing that the price will rise and buying a futures contract is called “short buying” or “long”, which is a long transaction.
Short selling: Bearing a bearish price and selling a futures contract is called “short selling” or “short position”, that is, a short transaction.
Delivery: The transfer of spot commodities between the seller of a futures contract and the buyer of a futures contract. Each exchange has specific procedures for spot commodity delivery. Some futures contracts, such as stock index contracts, are settled in cash.
Delivery day: According to the regulations of the Chicago Board of Trade, the delivery day is the third day of the delivery process. The contract buyer’s clearing company must deliver the delivery notice, together with a fully certified check, to the contract seller’s clearing company’s office on the delivery date. Physical delivery: refers to the act of the buyer and seller of a futures contract settling the expired open positions through the transfer of ownership of the subject matter of the futures contract in accordance with the rules and procedures established by the exchange when the contract expires. Commodity futures trading generally uses physical delivery. Cash delivery: refers to the delivery method in which the settlement price is used to calculate the profit and loss of the open contract when the futures contract is closed at the end of the period, and the futures contract is finally settled by cash payment.
Near-term (delivery) month: The futures contract month closest to the delivery period, also known as the spot month.
Forward (delivery) month: A contract month with a longer delivery period, relative to the near-term (delivery) month.
Premium: 1) The additional fee paid for commodities that are higher than the delivery standard of the futures contract as allowed by the exchange regulations. 2) Refers to the price relationship between different delivery months of a certain commodity. When the price in one month is higher than the price in another month, we say the higher price month has a premium to the lower price month. 3) When the trading price of a security is higher than the face value of the security, it is also called a premium or premium.
Opening a position: The transaction of starting to buy or sell a futures contract is called “opening a position” or “establishing a trading position”.
Position: Before physical delivery expires, investors can decide to buy or sell futures contracts locally based on market conditions and personal wishes. However, if an investor (long or short) does not perform reverse operations (sell or buy) with equal delivery month and number, and holds a futures contract, it is called a “position”.
Position closing: The behavior of traders closing the contracts in their hands and conducting reverse transactions is called “closing the position” or “hedging”.
Dividing positions: In order to hold excessive positions, exchange members or customers use other members’ seats or the names of other customers to engage in futures trading on the exchange in order to influence prices and manipulate the market, thereby circumventing the exchange’s position limit regulations. The total positions held in each seat are The amount exceeds the exchange’s position limit for the customer or member.
Position transfer (position reversal): In order to create market illusions or to transfer profits, exchange members transfer positions from one seat to another seat.
Countering: In order to create market illusions, exchange members or customers attempt to or actually seriously affect futures prices or market positions, deliberately collude, and conduct transactions or buy and sell each other in accordance with a pre-agreed method or price.
Forced position: Members or customers of futures exchanges use their financial advantages to deliberately raise or lower the futures market price by controlling futures trading positions or monopolizing spot commodities available for delivery, holding excessive positions and delivering, forcing the other party to default or price at an unfavorable price The act of closing positions to make huge profits. According to different operating techniques, it can be divided into two methods: “long squeeze short” and “short squeeze long”. Long and short squeeze: In some small varieties of futures trading, when market manipulators anticipate that there will be insufficient spot commodities for delivery, they use their financial advantages to establish sufficient long positions in the futures market to drive up futures prices, and at the same time, they purchase and hoard large quantities of goods. The physical object is available for delivery, so the price in the spot market rises at the same time. In this way, when the contract is about to be delivered, the short-selling members and customers will either buy back the futures contract at a high price and close the position with loss; or buy the spot at a high price for physical delivery, or even be fined for breach of contract because they cannot deliver the physical goods. In this way, long positions Holders can make huge profits from it. Short squeeze: market manipulators take advantage of capital or physical goods to sell a large number of certain futures contracts in the futures market, so that their short positions greatly exceed the ability of long parties to undertake physical goods. As a result, the price of the futures market dropped sharply, forcing speculative bulls to sell the contracts they held at low prices and admit losses, or receive default penalties due to their financial strength to receive the goods, thereby making huge profits. Designated position: An instruction that causes the option contract seller to enter a specific futures position to fulfill its obligations. For example, the call option seller will assume a short futures position when the buyer requires performance, and the put option seller will assume a long futures position when the buyer requires performance. Trading position (position): a market agreement. The buyer of a futures contract is in a long (short) position, and the seller of a futures contract is in a short (short sale) position. Broker agent: A person who pulls orders, customers or customer funds for a futures commission merchant, introducing broker, commodity trading consultant or commodity joint venture fund manager.
Joint or informal membership: A type of membership in the Chicago Board of Trade. Individuals with joint membership can conduct futures trading in financial futures and other specified commodities.
Even-even option: An option in which the strike price (strike price) of the option contract is equal or approximately equal to the current market price of the related futures contract. Bar chart: A graph indicating the highest price, lowest price and settlement price of a certain trading order within a certain period of time.
Basis: The difference between the current spot market price and the futures market price of the same commodity. Unless otherwise stated, the basis is generally calculated using the recent futures contract month.
Offer: A bid form in which a person hopes to buy a commodity at a certain price level, relative to an offer.
Broker: A company or individual that executes orders for futures and options contracts for financial, commercial institutions or the general public.
Warehousing fees: storage fees and insurance premiums paid during the period of holding spot commodities (such as grains or metals). In the interest rate futures market, it means the interest fees paid for occupying funds. Also known as holding fees or holding positions.
Carryover inventory: Mainly used in the grain market, it means transferring the remaining inventory of the previous sales year to the inventory of the next sales year.
Spot commodities: actual commodities bought or sold, such as soybeans, corn, mechanical stamping mirror gold plated aluminum tube, silver, treasury bills, etc., also called actual goods.
Spot market: A place where actual commodities are bought and sold, i.e. grain warehouses, banks, etc.
Spot Contract: A sales agreement for immediate or future delivery of actual goods.
Spot price: usually refers to the spot market price of actual goods that can be delivered immediately.
Cash settlement: Usually used for index futures contract transactions. The settlement method is to settle index futures contracts in cash based on the spot value of the index on the last trading day. It is different from delivery of specified commodities or financial instruments.
Chart method: A method of using charts to analyze market behavior and predict future market price trends. Technical analysts use charting methods to calculate the highest price, lowest price, settlement price, average price change, trading volume and open volume. The two basic price chart forms are bar charts and dot charts.
The most economical (cheap) deliverable method: a calculation method used to determine which spot bonds will be most profitable when delivered according to futures contracts.
Commodity Options Market Membership: A membership offered by the Chicago Board of Trade. Individuals with such membership may trade contracts classified as commodity options markets.
Commission: The fee charged by a broker for executing trading orders.
Aggregation: Futures market term. This means that as the futures contract approaches expiration, the spot price and the futures price tend to converge, that is, the basis will approach zero.
Coupon: The interest on a bond that the bond issuer guarantees to pay to the creditor on a regular basis before the bond matures. This interest rate is calculated annually.
Crop sales year: The time interval between the harvest season of agricultural products in the current year and the harvest season in the next year. The sales years of various agricultural products are slightly different. For example, the soybean sales year is September 1st to August 31st. The futures contract month of November is the first contract month of the new crop year, and the futures contract month of July is The last contract month of the old crop year.
Cross-hedging: When hedging a certain spot commodity but there is no futures contract for the same commodity, another commodity futures contract with the same price development trend can be used to hedge the spot commodity.
Current income: the ratio of bond interest to the market price of the bond at that time.
Day trader: A speculator who closes all futures and options contracts traded on that day before the close of daily trading.
Delivery grade: A standard grade of commodity or financial instrument provided in accordance with the relevant rules of the exchange when physical goods must be delivered based on a futures contract.
Butterfly: A way of calculating the change in option premium, that is, the change in option premium caused by the change in the price of each unit of the relevant futures. It is usually interpreted as the probability that the underlying futures price movement will cause the option contract to have intrinsic value at expiration. Gap: The price difference between the grade, grade and different delivery locations of the same product.
Minimum price: the minimum price change allowed in a certain contract transaction
Link to this article：Encyclopedia of basic futures knowledge
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