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.
Technical Analysis
An approach to analysis of futures markets which examines patterns of price change, rates of change, and changes
in volume of trading, open interest and other statistical indicators.
See also Charting.
Tick
The smallest allowable increment of price movement for a futures contract. Also referred to as Minimum Price Fluctuation.
Time Value
The amount of money options buyers are willing to pay for an option in anticipation that over time a change in the
underlying futures price will cause the option to increase in value. In general, an option premium is the sum of time
value and intrinsic value. Any amount by which an option premium exceeds the option's intrinsic value can be considered
time value. Also referred to as Extrinsic Value.
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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