Futures Trading Glossary
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Source: National Futures Association; published here with permission. This publication (Glossary of Futures Terms - An Introduction to the Language of the Futures Industry)
is the property of the National Futures Association.
First Notice Day
The first day on which notice of intent to delivery a commodity in fulfillment of an expiring futures
contract can be given to the clearinghouse by a seller and assigned by the clearinghouse to a buyer.
Varies from contract to contract.
Floor Broker
An individual who executes orders on the trading floor of an exchange for any other person.
Floor Trader
An individual who is a member of an exchange and trades for his own account on the floor of the exchange.
Forward (Cash) Contract
A contract which requires a seller to agree to deliver a specified cash commodity to a buyer sometime in the
future. All terms of the contract are customized, in contrast to futures contracts whose terms are standardized.
Forward contracts are not traded on exchanges.
Frontrunning
A process whereby a futures or options position is taken based on non-public information about an impending
transaction in the same or related futures or options contract.
Full Disclosed
An account carried by a Futures Commission Merchant in the name of an individual customer; the opposite of
an Omnibus Account.
Fundamental Analysis
A method of anticipating future price movement using supply and demand information.
Futures Commission Merchant (FCM)
An individual or organization which solicits or accepts orders to buy or sell futures contract or commodity
options and accepts money or other assets from customers in connection with such orders. An FCM must be
registered with the CFTC.
Futures Contract
A legally binding agreement to buy or sell a commodity or financial instrument at a later date. Futures
contracts are standardized according to the quality, quantity and delivery time and location for each commodity.
The only variable is price.
Futures Industry Association
The national trade association for Futures Commission Merchants.
Source: National Futures Association; published here with permission. This publication (Glossary of Futures Terms - An Introduction to the Language of the Futures Industry)
is the property of the National Futures Association.
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