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Options and Futures

Spreading

In finance, there is a technique called "arbitrage" that involves buying and selling two related markets at the same time in hopes of making a profit. This can be done in various ways, such as buying one futures contract and selling another of the same commodity but with a different delivery month. Alternatively, one could buy and sell the same delivery month on different futures exchanges, or even buy a certain delivery month on one market and sell the same on a related market.

Futures Commission Merchant

An essential player in the world of futures trading is the Futures Commission Merchant (FCM). They act as intermediaries between buyers and sellers of futures contracts, ope...

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Clear

A clearinghouse is responsible for tracking and analyzing trades, as well as settling margin flow, on a daily basis for its clearing member. This process, known as mark-to-m...

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Holder

An investor who holds the right to buy or sell an underlying asset at a predetermined price is known as the option holder. In the world of finance, this party is also referr...

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Closing Sale

, while simultaneously establishing a short position in the same series. When a seller aims to decrease or remove their long position in a specific set of options and at the...

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