| actuals | : | Commodities on hand, ready for shipment, storage and manufacture.
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| arbitrage | : | Simultaneous purchase and sale of two different contracts (or a combination of cash and futures) to take advantage of perceived mispricing. In a pure arbitrage, mispricing is locked in and a risk-free profit made through trades.
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| at-the-market | : | An order to buy or sell at the best price possible at the time an order reaches the trading pit.
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| at-the-money | : | In options, when the strike price equals the price of the underlying futures.
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| basis | : | The difference between the price of a futures contract and the underlying commodity's spot (or cash) price.
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| basis grade | : | Specified grade, or grades. named in the exchange's futures contract. Other grades deliverable
are subject to price differentials from the basis or "contract" grade.
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| bear | : | A market trending downward, or a person who expects prices to go lower.
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| bid | : | A bid, subject to immediate acceptance, made on the floor of exchange to buy a definite number of futures contracts at a specified price.
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| breaking | : | A quick decline In price.
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| bulging | : | A quick increase In price.
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| bull | : | A market trending upward; on a person who expects prices to go higher.
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| buy on close | : | To buy at the end of the trading session at a price within the closing range.
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| buy on opening | : | To buy at the beginning of a trading session at a price within the opening range.
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| call | : | An option that gives the buyer the right to a long position in the underlying futures at a specific price; the call writer (seller) may be assigned a short position in the underlying futures if the buyer exercises the call.
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| cash commodity | : | The actual physical product on which a futures contract is based. This product can include agricultural commodities, financial instruments and the cash equivalents of index futures.
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| cash delivery | : | (see delivery)
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| cash market | : | Markets where trading is taking place for spot (immediate or near immediate) delivery as opposed to future delivery.
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| CFTC | : | Commodity Futures Trading Commission
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| CTA | : | Commodity Trading Advisor
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| close | : | The period at the end of the trading session officially designated by the exchange during which all transactions are considered made "at the close."
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closing
price
(or range) | : | The price (or price range) recorded during the period designated by the exchange as the official close.
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| commission house | : | A concern that buys and sells actual commodities or futures contracts for the accounts of customers.
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| cover | : | The cancellation of a short position in any futures contract by the purchase of an equal quantity of the same futures contract (see liquidation).
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| cross hedge | : | When a cash commodity is hedged by using futures contracts based on another commodity.
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