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.
Hedging
The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite
position in the futures market. A long hedge involves buying futures contracts to protect against possible
increasing prices of commodities. A short hedge involves selling futures contracts to protect against possible
declining prices of commodities.
High
The highest price of the day for a particular futures contract.
Holder
The purchaser of either a call or put option. Option buyers receive the right, but not the obligation, to
assume a futures position. The opposite of a Grantor. Also referred to as the Option Buyer.
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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