| Actuals: |
See
Cash Commodity. |
Aggregation:
|
The
policy under which all futures positions owned or controlled by one
trader or a group of traders are combined to determine reportable positions
and speculative limits. |
| American
Style Option: |
A
call or put option contract that can be exercised at any time before
the expiration of the contract.
Most exchange listed options are American style options. |
| Arbitrage: |
The
simultaneous purchase and sale of similar commodities in different markets
to take advantage of a price discrepancy. |
| Arbitration: |
The
process of settling disputes between parties by a person or persons
chosen or agreed to by them. The National Futures Association's arbitration
program provides a forum for resolving futures-related disputes between
NFA Members or between Members and customers. |
| Assignment: |
When
an option is exercised by the holder of that option, the option is assigned
to the writer of that option.
The writer of a Call option is obligated to sell stock at the
striking price of the Call option; the writer of a Put option is obligated
to buy stock at the striking price of the Put option. |
| Associated
Person (AP): |
An
individual who solicits orders, customers or customer funds on behalf
of a Futures Commission Merchant, an Introducing Broker, a Commodity
Trading Advisor or a Commodity Pool Operator and who is registered with
the Commodity Futures Trading Commission. |
| At
the money (ATM): |
An
option whose strike price is approximately the same as the current price
of the underlying stock or future.
For example, with IBM trading at $110, both the $110 call options
and $110 put options are at the money. |