| Head-and-shoulders
Pattern: |
A
reversal pattern consisting of three price peaks (in the case of a head-and-shoulders
top) where the middle peak (the "head") is higher than the
peaks on either side of it (the shoulders). A head-and-shoulders bottom
is simply the inverse of this pattern. |
| Hedging: |
The
practice of offsetting the price risk inherent in any cash market position
by taking an equal but opposite position in the (i.e. futures) market.
A long hedge involves buying futures contracts to protect against possible
increasing prices of commodities. A short hedge involves selling futures
contracts to protect against possible declining prices of commodities.
|
| High: |
The
highest price of the day for a particular contract. |
| High-level
Pattern: |
A
pattern that develops near the top of the recent trading range. For
example, a consolidation that occurs at the top of an up trend could
be called a "high-level consolidation."
|
| Historical
Volatility: |
The
degree of movement in a market over a past time period, typically 100
days. It is normally expressed as an annualized percentage. A 100-day
historical volatility of 32%, for instance, means that over the last
100 days the market has fluctuated in such a way that it would be expected
to fluctuate about 32% in a year's time. If the market is currently
priced at exactly 100, one would expect to see values between 68 (100-32%
of 100) and 132 (100+ 32% of 100). |
| Holder: |
The
purchaser of either a call or a put option. Option buyers receive the
right, but not the obligation, to assume a position. The opposite of
a Grantor. Also referred to as the Option Buyer.
|