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Futures Terms and Definitions

Term of the Day

    Bilateral Netting

Settlement of mutual obligations between two parties through netting.  All swap agreements between two parties are consolidated and one net payment is made from one party to the other. This is governed through a master agreement. Bilateral Netting is widely used in futures markets.

Alphabetically

Abandoned Option
Actuals
Against Actuals
Aggregation
Allowances in Futures
American Option
American Petroleum Institute - API
Anonymous Bidding
Approved Delivery Facility
Arabica Coffee
Arrears Swap
Artificial Price
Asian Option
Asset Backed Credit Default Swap - ABCDS
Asset Bulge (in finance)
Asset Deficiency
Asset Swap
Assignable Futures Contract
Associated Person
At the Market
Back Month Contract
Back Months
Back-pricing
Backwardation
Barone-Adesi And Whaley Model
Barrels per Day
Base Metals
Basis
Basis Differential
Basis Grade
Basis Quote
BAX Contract
Bespoke CDO
Bilateral Netting
Billions of Cubic Feet Equivalent BCFE
Binary Option
Binomial Option Pricing Model
Black Scholes Pricing Model
Blackboard Trading
Board Broker
Board Broker System
BOBL Futures Contract
Bond Futures Contract
Bond Market Association (BMA) Swap
Bond Option
Booking the Basis
Brent Blend
Brent Crude
BUGS Index HUI
Bullion
Buoyant (in finance)
Buyer's Call (in commodities)
Buying Hedge
Calendar Spread
Callable Swap
Canadian Association of Petroleum Producers (CAPP)
Canadian Derivatives Clearing Corporation (CDCC)
Canadian Royalty Trust (CANROY)
Cantor Futures Exchange
Cap and Trade
Carrying Broker
Carrying Charge
Carrying Charge Market
Cash Commodity
Cash Contract
Cash Market
Cash Price (in commodities)
Cash Settlement
Cashless Conversion
Catastrophe Futures
Changer
Cheapest to Deliver - CTD
Chicago Board Of Trade (CBOT)
Chicago Mercantile Exchange (CME)
Circus Swap
Clearing Fee
Clearing Member Trade Agreement (CMTA)
Click Through Rate (CTR)
Coffee, Sugar and Cocoa Exchange (CSCE)
COMEX
Commercial (commodities) Trader
Commercial Grain Stock
Commercial Well
Commission House
Commitments of Traders Report (COT)
Commodities exchange
Commoditization
Commodity
Commodity ETF
Commodity Exchange Act (CEA)
Commodity Futures Contract
Commodity Futures Modernization Act
Commodity Futures Trading Commission (CFTC)
Commodity Index
Commodity Paper
Commodity Pool
Commodity Price Risk
Commodity Product Spread
Commodity Research Bureau Index (CRB)
Commodity Selection Index (CSI)
Commodity Swap
Commodity Trading Advisor (CTA)
Companion Tranche
Constant Maturity Swap (CMS)
Contango
Contract Market
Contract Month
Contract Size
Contract Unit
Contracts for Difference (CFD)
Convenience Yield
Convergence
Cooling Degree Day-- CDD
Copper
Corn/Hog Ratio
Cost of Tender
Country Basket
Crack Spread
Credit Default Contract
Credit Default Swap - CDS
Credit Derivative
Credit Spread
Crop Year
Crude Oil
Crush Spread
Currency Swap
Current Delivery
Current Exposure Method -CEM
Cylinder Strategy
De-hedge
Deliverable Grades
Delivery Date
Delivery Instrument
Delivery Month
Delivery Notice
Delivery Point
Delivery Price
Derivatives Transaction Execution Facility – DTEF
Development Well
Differentials
Dojima Rice Exchange
Double Hedging
Dow Jones AIG Commodity Index - DJAIGCI
Dr Copper
Dual Currency Swap
E- Micro Forex Futures
eCBOT
EIA Natural Gas Report
EIA Petroleum Status Report
Eligible Commercial Entity
Eligible Commercial Entity (1)
Eligible Contract Participant
Energy Derivatives
Energy Return On Investment - EROI
Enhanced Oil Recovery - EOR
Estimated Ultimate Recovery - EUR
ETF Futures and Options
EUREX
European Option
Even Lot
Exchange of Futures for Cash
Exchange Traded Binary Options
Exchange Traded Derivative
Excluded Commodity
Exempt Commodity
Exploratory Well
Extendable Swap
Feed Ratio
First Notice Day
Five Against Bond Spread- FAB
Floortion
Forward Booking
Forward Commitment
Forward Contract
Forward Delivery
Forward Discount
Forward Exchange Contract
Forward Premium
Forward Rate Agreement- FRA
Forward Spread
Forward Start Option
Forward Swap
Forwardation
Fraption
Free Alongside Ship- FAS
Front Month
Full Carry
Full Charge
Fungibility
Futures Bundle
Futures Commission Merchant - FCM
Futures Curve
Futures Equivalent
Futures Industry Association - FIA
Futures Pack
Futures Spread
Futures Strip
Gas Exporting Countries Forum -GECF
Globex
Gold Fix
Goldman Sachs Commodity Index - GSCI
Grading Certificate
HaraKiri Swap
Hardening
Heating Degree Day - HDD
HedgeStreet
Held By Production - HBP
Henry Hub
Hoarding
Hockey Stick Bidding Process
Hydraulic Fracturing
IMF Nonfuel Commodity Index
Implied Repo Rate
In Sight
In The Money
Index Amortizing Swap IAS
Index Arbitrage
Index Futures
Inter-commodity Spread
Inter-delivery Spread
Interest Rate Floor
Interest Rate Futures
Interest Rate Swap
Intermarket Spread
International Coffee Organization (ICO)
International Commodities Clearing House ICCH
International Monetary Market IMM
International Swaps and Derivatives Association ISDA
Inverted Market
Inverted Spread
Inverted Yield Curve
Invisible Supply
Itayose
iTraxx
Last Trading Day
Legacy Hedge
Legging In
Light Crude Oil
Limit Down
Limit Move
Limit Up
Liquefied Natural Gas - LNG
Lock Limit
London International Financial Futures And Options Exchange LIFFE
London Metal Exchange LME
Long Hedge
Long The Basis
Macroeconomic Swap
Managed Futures
Managed Futures Account
MAR Ratio
Midstream
Minimum Price Contract
Mismatch Risk
Modified Following
MSCI All Country World Commodity Producers Sector Capped Index (MSCI AWC)
Mutualization of Risk
Narrow Basis
Natural Gas ETF
Natural Hedge
Nearby Month
Negative Carry
Nominal Quotation
Non Commercial Trader
Non Deliverable Forward NDF
Noon Average Rate Contract NARC
Offset Transaction
Oil Field
Oil Initially In Place - OIIP
Oil Refinery
Oil Reserves
Oil Sands
Omnibus Account
OPEC Basket
Open Outcry
Organization of Petroleum Exporting Countries - OPEC
Outright Futures Position
Overnight Index Swap
Pay-Collect in Futures
Plain Vanilla Swap
Point Balance
Political Futures
Portfolio Margin
Position Trader
Possible Reserves
Posted Price
Price Basing
Primary Recovery
Probable Reserves
Put Swaption
Quadruple Witching
Quanto Swap
Retracement
Reverse Calendar Spread
Reverse Gold ETF
Rig Utilization Rate
Robusta Coffee
Roll Yield
Rollercoaster Swap
Rolling Hedge
Seller’s Call
Seller’s Option
Selling Hedge
Settlement Risk
Short Gold ETF
Short Selling
Short the Basis
Shut In (oil drilling)
Single Stock Future
Soft Commodity
Sour Crude
SPAN Margin
Spot Commodity
Spot Market
Spot Price
Stripper Well (oil drilling)
Sweet Crude Oil
Vertical Spread
West Texas Intermediate Crude - WTI