Actuals refer to commodities that can be purchased and used directly, as well as to expenses or receipts that have actually occurred, instead of budgeted or projected figures.
To accumulate an item such as money, property, or goods. A company may stock up on a commodity now for future sale when it believes that a sharp increase in the price of the commodity will take place at a later date.
The term 'Bottom' refers to a support level for market prices of any type, representing the lowest point in various finance and economic contexts.
An investor who seeks to purchase securities, commodities, or other assets that are at their lowest market prices and are expected to rise in value.
A carrying charge is a fee associated with holding an investment or conducting business that includes costs such as interest, storage, and insurance across various sectors like commodities, real estate, retailing, and securities.
The amount of cash or equivalent instruments held at any point in time. A commodity or securities trader or an investment company needs to monitor its cash position carefully to maintain adequate liquidity.
The Chicago Mercantile Exchange (CME) is one of the largest and most diverse financial exchanges in the world, allowing for the trading of futures and options across a wide array of asset classes, including agriculture, energy, metals, and financial instruments.
An independent agency of the U.S. federal government that regulates the U.S. derivatives markets, which include futures, swaps, and certain kinds of options.
An illegal practice of purchasing a security or commodity in such volume that control over its price is achieved.
Cost of carry refers to the expenses associated with holding a particular asset over a period of time, which can include storage costs, insurance, and financing.
Curb Exchange, also known as the American Stock Exchange, refers to an organized market where securities, commodities, currencies, and bonds are traded directly between brokers or via telecommunication systems.
A Daily Trading Limit is the maximum amount by which the price of a commodity or option is allowed to rise or fall in a single trading day. This mechanism is used to curb excessive volatility and protect investors.
Economic goods are commodities and products that require effort and resources, and are available at a price in the market. They are distinct from freely available goods or those with no utility.
A firm order is an instruction given to a broker to execute a transaction at specific terms that remains valid for a stated period or until cancelled.
Understanding fluctuation is crucial within the realms of finance, economics, and business operations. It encapsulates the variability seen in prices, interest rates, and broader economic indicators, often influencing decision-making processes for investors, businesses, and policymakers.
Forward dealing involves transactions in commodities, securities, currencies, freight, etc., for future delivery at a price agreed upon at the time the contract is made. This type of trading enables dealers and manufacturers to hedge future requirements.
A futures contract is a standardized legal agreement to buy or sell a particular commodity, currency, or financial instrument at a predetermined price at a specified time in the future. Unlike options, futures contracts entail a mandatory obligation to execute the transaction.
A futures transaction refers to the buying and selling of futures contracts on commodities or financial instruments, which obligate the buyer to purchase or the seller to sell an asset at a predetermined future date and price.
Going long refers to the practice of purchasing a stock, bond, or commodity for investment or speculation purposes. The purchased security is held with the expectation that its value will increase over time, thereby providing profits to the investor.
Goods refer to commodities or items of commerce that are tangible and physical, and can be owned, sold, or exchanged in the marketplace, excluding real estate, choses in action, investment securities, or similar items.
The Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity marketplaces. ICE plays a crucial role in global financial markets, providing trading and clearing services for a wide range of asset classes.
An investment analyst helps in making informed decisions about investments in securities, commodities, and more, typically employed by financial institutions.
Justified price refers to the fair market price that an informed buyer is willing to pay for an asset, whether it be in the form of stocks, bonds, commodities, or real estate.
A term used in finance to denote secured rates of return, commodities positions in static markets, and investor withholding due to tax implications.
A long position is a financial strategy where an investor purchases a security or a derivative expecting that its price will rise over time, allowing for a profitable sale in the future.
In financial markets, a long position refers to the purchase of a security, commodity, or currency with the expectation that its value will increase over time. This term is often used in the context of stock trading, futures contracts, and foreign exchange markets.
Market price refers to the prevailing price of a product, service, security, or raw material in an open and competitive market. This term is crucial in formal markets such as stock exchanges or commodity markets.
Goods and commodities sold at the retail level. Merchandising is the buying, presenting, and selling of merchandise, including related activities like advertising, displaying, and promoting them to retail customers.
A mutual fund is a type of regulated investment company that pools money from shareholders to invest in a diversified portfolio of stocks, bonds, and other securities.
Net Change refers to the difference between the closing price of a stock, bond, commodity, or mutual fund from one trading day to the next. It is a crucial metric for investors to gauge the daily performance of an asset.
A trading position where a trader holds commodities, securities, or currencies that are bought but unsold or unhedged, exposing them to market fluctuations until the position is closed or hedged.
The OTC Market (Over-the-Counter Market) is a decentralized market where trading of financial instruments such as stocks, bonds, commodities, and derivatives occurs directly between two parties without a central exchange or broker.
In finance, partial delivery occurs when a broker or seller fails to deliver the full quantity of a security or commodity that is stipulated in a contract. For instance, if a contract requires the delivery of 10,000 shares of a stock, but only 7,000 shares are delivered, this would be termed as a partial delivery.
Selling short involves selling securities, commodities, or foreign currencies not actually owned by the seller, with the hope of repurchasing them later at a lower price to earn a profit.
A position held by a dealer in securities, commodities, currencies, etc., where sales exceed holdings because the dealer expects prices to fall, enabling the shorts to be covered at a profit. Contrasts with a long position.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a sudden surge in buying and even higher prices.
A monetary system where the value of a country's currency is directly linked to a specific amount of silver.
A spot commodity is a commodity traded with the expectation that it will actually be delivered to the buyer, as contrasted with a futures contract, which will usually expire without any physical delivery taking place. Spot commodities are traded in the spot market.
A market that deals in commodities or foreign exchange for immediate delivery. Immediate delivery in foreign currencies usually means within two business days. For commodities, it typically means within seven days.
Taking delivery refers to the acceptance of goods, commodities, or securities by the recipient, with documentation such as a bill of lading, reflecting the transfer and acknowledgment of receipt.
Technical analysis is a method of evaluating securities and commodities by analyzing statistics generated by market activity, such as past prices and trading volume. It uses charts and other tools to identify patterns and trends that may predict future price movements.
A thin market refers to a market for a security, commodity, currency, etc., where few transactions are occurring. Any substantial trade in such a market can have a direct and pronounced impact on prices, leading to heightened volatility.
A trading range is defined both in commodities and securities markets, encompassing the price limits within which a commodity or security is allowed to move during a trading day.
An underlying security refers to the financial instrument (like stocks, bonds, commodities, or indexes) on which derivatives such as options, futures, or other securities are based. It is the asset that must be delivered when specific financial contracts, like put options or call options, are exercised.
In various contexts, a unit can represent either a standard measure used in transactions or a division within a larger entity, such as a business or organization.
The term 'Unit of Trading' refers to the normal number of shares, bonds, or commodities that constitute the minimum unit of trading on an exchange.
Upside potential refers to the amount of upward price movement an investor or an analyst expects of a particular stock, bond, or commodity.
Usage rate refers to the speed at which a commodity, raw material, or other resource is used up. It measures consumption over a specific period and is crucial for managing inventory, production schedules, and financial planning.
Worth refers to the inherent value of a commodity, good, service, or other economic factor. It is often measured beyond mere price in various contexts, such as comparable worth programs that aim for wage equity.
