Futures Trading Glossary

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.

Maintenance Margin
A set minimum margin (per outstanding futures contract) that a customer must maintain his margin account to retain the futures position.
See Also Margin

Managed Account
See Discretionary Account

Managed Funds Association (MFA)
The trade association for the managed funds industry.

Margin
An amount of money deposited by both buyers and sellers of futures contract and be sellers of options contracts to ensure performance of the terms of the contract (the making or taking delivery of the commodity or the cancellation of the position by a subsequent offsetting trade). Margin in commodities is not a down payment, as in securities, but rather a performance bond.
See also Initial Margin, Maintenance Margin and Varation Margin.

Margin Call
A call from a clearinghouse to a clearing member, or from a broker or firm to a customer, to bring margin deposits up to a required minimum level.

Mark-to-Market
To debit or credit on a daily basis a margin account absed on the close of that day's trading session. In this way, buyers and selers are protected agaisnt the possibility of contract default.

Market Order
An order to buy or sell a futures or options contract at whatever price is obtainable when the order reaches the trading floor.

Maximum Price Flucuation
See Price Limit.

Mediation
A voluntary process in which the parties to a futurse-related dispute work with a neutral third party to find a mutually acceptable solution.

Minimum Price Flucuation
See Tick.

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.