Glossary of Terms

Futures and derivatives trading terminology

A comprehensive glossary of futures and derivatives trading terms. Click a letter below to navigate to terms beginning with that letter.

A

Actuals
Physical or cash commodities as distinguished from commodity futures contracts.
Aggregation
The policy under which all futures positions owned or controlled by one trader or a group of traders are combined to determine reporting status and speculative limit compliance.
Arbitrage
The simultaneous purchase and sale of similar commodities in different markets to take advantage of a price discrepancy.
Ask
The price at which a seller is willing to sell a futures contract. Also called the offer.
At-the-Money
An option whose strike price is equal to, or approximately equal to, the current market price of the underlying futures contract.
Automated Trading System
A trading system that uses computer algorithms to automatically generate and execute buy and sell orders based on predefined rules.
Average Daily Volume
The total number of contracts traded during a specified period divided by the number of trading days in that period.

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