Archive for the 'F Glossary' Category

Futures price

Futures price

Futures price

The price at which the parties to a futures contract agree to transact on the settlement date.



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Futures option

Futures option

Futures option

An option on a futures contract. Related: options on physicals.



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Futures market

Futures market

Futures market

A market in which contracts for future delivery of a commodity or a security are bought or sold.



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Futures contract multiple

Futures contract multiple

Futures contract multiple

A constant, set by an exchange, which when multiplied by the futures price gives the dollar value of a stock index futures contract.



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Futures contract

Futures contract

Futures contract

Agreement to buy or sell a set number of shares of a specific stock in a designated future month at a price agreed upon by the buyer and seller. The contracts themselves are often traded on the futures market. A futures contract differs from an option because an option is the right to buy or sell, whereas a futures contract is the promise to actually make a transaction. A future is part of a class of securities called derivatives, so named because such securities derive their value from the worth of an underlying investment.



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Futures commission merchant

Futures commission merchant

Futures commission merchant

A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures exchange and, who, in connection with such solicitation or acceptance of orders, accepts any money or securities to margin any resulting trades or contracts. The FCM must be licensed by the CFTC. Related: commission house , omnibus account



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Futures

Futures

Futures

A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.



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Future value

Future value

Future value

The amount of cash at a specified date in the future that is equivalent in value to a specified sum today.



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Future investment opportunities

Future investment opportunities

Future investment opportunities

The options to identify additional, more valuable investment opportunities in the future that result from a current opportunity or operation.



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Future

Future

Future

A term used to designate all contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.



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