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Account Executive
The agent of a commission house who serves
customers/traders by entering their commodity futures
and options orders, reporting trade executions, advising
on trading strategies, etc.
Actuals
Physical cash commodities as opposed to future
contracts.
All-Or-None
An order which must be filled in its entirety or not
at all.
Alternative Delivery Procedure (ADP)
A provision of a futures contract that allows buyers
and sellers to make and take delivery under terms or
conditions that differ from those prescribed in the contract.
An ADP may occur at any time during the delivery
period, after long and short futures positions have been
matched by the Exchange for the purpose of delivery.
American Option
An options contract that may be exercised at any
time prior to expiration. This differs from a "European
option," which may only be exercised on the expiration
date. The Exchange options contracts are "American."
American Petroleum Institute (API)
The primary U.S. oil industry trade association,
based in Washington, D.C. API conducts research and
sets technical standards for industry equipment and
products from wellhead to retail outlet. It also compiles
statistics which are regarded as industry benchmarks.
API Gravityt
Gravity (weight per unit volume) of oils as measured
by the API scale whereby:
API Gravity = 141.5
Specific gravity at 60o F
Arbitrage
The simultaneous purchase of one commodity
against the sale of another in order to profit from fluctuations
in the usual price relationships. Variations include
the simultaneous purchase and sale of different delivery
months of the same commodity; of the same delivery
month, but different grades of the same commodity; and
of different commodities.
Ask
A motion to sell. The same as offer.
The process by which the seller of an options
contract is notified of a buyer’s intention to exercise the
rights associated with the option.
At-The-Market
An order to buy or sell a futures contract at whatever
price is obtainable when the order reaches the trading
floor. Also called a market order.
At-The-Money
An option whose exercise, or strike, price is closest
to the futures price.
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