forex glossary ! (2)

B - See Introducing Broker.
IBRD - The international bank of reconstruction and development.
ICCH - International Commodities Clearing House Limited, a clearing house based in London operating world wide for many futures markets.
IDEM Membership (CBOT) - A Chicago Board of Trade membership of trading privileges for futures contract in the index, debt, and energy markets category (gold, municipal bond index, 30-day fed funds, and stock index futures).
IFEMA - International Foreign Exchange Master Agreement.
IMF - The International Monetary fund.
IMM - International Monetary Market part of the Chicago Mercantile Exchange that lists a number of currency and financial futures Implied volatilityA measurement of the market's expected price range of the underlying currency futures based on the traded option premiums.
Inverse Head and Shoulder - Turned "a head and shoulders".
Inverted Market - A futures market in which the nearer months are selling at premiums over the more distant months; characteristically, a market in which supplies are currently in shortage.
Invisible Supply - Uncounted stocks of a commodity in the hands of wholesalers, manufacturers and producers which cannot be identified accurately; stocks outside commercial channels but theoretically available to the market.
IOM - Index and Options Market part of the Chicago Mercantile Exchange.
IPI - Industrial Production Index. A coincident indicator measuring physical output of manufacturing, mining and utilities.
ISDA (International Securities Dealers Association) - Organization which foreign currency exchange banks have formed to regulate inter-bank markets and exchanges.
Joint Account - The incorporated bill.
Joint and Several Liability - Generally refers to the responsibility of multiple persons to pay a judgment or fine. When persons are jointly and severally liable to make payment, the person who is entitled to receive the payment (the creditor) may collect the entire amount from one or more of the responsible persons separately or from all responsible persons collectively, at the creditor's option. The amounts paid by any responsible person to the creditor reduce the amount for which the others remain responsible to pay the creditor.
KCBOT - Kansas City Board of Trade
KCBT - Kansas City Board of Trade
Lagging Indicators - Market indicators showing the general direction of the economy and confirming or denying the trend implied by the leading indicators. Also referred to as Concurrent Indicators.
Large Traders - A large trader is one who holds or controls a position in any one future or in any one option expiration series of a commodity on any one contract market equaling or exceeding the exchange or CFTC-specified reporting level.
Last Notice Day - The final day on which notices of intent to deliver on futures contracts may be issued.
Last Trading Day - According to the Chicago Board of Trade rules, the final day when trading may occur in a given futures or option contract month. Futures contracts outstanding at the end of the last trading day must be settled by delivery of the underlying commodity or securities or by agreement for monetary settlement (in some cases by EFPs).
Locked In - A hedged position that cannot be lifted without offsetting both sides of the hedge (spread). Also refers to being caught in a limit move.
Long - One who has bought futures contracts or owns a cash commodity. Opposite of Short.
Long Hedge - Buying futures contracts to protect against possible increasing prices of commodities. Opposite of Short Hedge.
Long Position - A position that appreciates in value if market prices increase.
Long the Basis - A person or firm is said to be long the basis if they have bought the spot commodity and hedged with a sale of futures.
Lookback Option - An option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.
Low - The lowest price of the day for a particular futures contract.
M0 - Cash in circulation . Only used by the UK.
M1 - Cash in circulation plus demand deposits at commercial banks. There are variations between the precise definitions used by national financial authorities.
M2 - Includes demand deposits time deposits and money market mutual funds excluding large CDs.
M3 - In the UK it is M1 plus public and private sector time deposits and sight deposits held by the public sector.
M4 - In the US it is M2 plus negotiable CDs.
MACE - MidAmerica Commodity Exchange.
MGE - Minneapolis Grain Exchange
MIDAM - MidAmerica Commodity Exchange.
MIT - See Market-If-Touched.
MITI - Japanese ministry of International Trade & Industry.
MM - Money Markets.
MRA - See Member Responsibility Action.
Money Pass - Two traders trading for their personal accounts, execute a buy and a sell with each other at different prices, resulting in a profit for one and a loss for the other.
Money Supply - The amount of money in the economy, which can be measured in a number of ways. In India we have four measures of money supply i.e M1, M2, M3, M4.
Motion - A request asking a judge to issue a ruling or order on a legal matter.
Motion for Summary Judgment - A request made by either party in a civil case. Asserts that the opposing party has raised no genuine issue of fact necessitating a hearing and asks the judge to rule in favor of the moving party based on the law. Typically made before the trial.
Motion to Dismiss - In a civil case, a request to a judge by the defendant, asserting that even if all the allegations are true, the plaintiff is not entitled to any legal relief and thus the case should be dismissed.
Moving Average - Sliding (dynamic) average. The indicator applied in a technical analysis for definition of the tendency in the market.
Municipal Bonds - Debt securities issued by state and local governments, and special districts and counties.
Mutual fund - An open-end investment company. Equivalent to unit trust.
NAV - See Net Asset Value.
Narrow Market - The market with a small amount of the participants, described in low volumes and significant fluctuations of the prices.
NFA - See National Futures Association.
NFA Associate Member - See Associate Member.
NYBT or NYBOT - New York Board of Trade.
NYCE - New York Cotton Exchange.
NYFE - New York Futures Exchange.
NYME or NYMEX - New York Mercantile Exchange.
NYMEX - New York Mercantile Exchange.
Naked Call - See Naked Option.
Naked Option - The sale of a call or put option without holding an offsetting position in the underlying commodity.
Naked Put - See Naked Option.
Non Member Panel - A panel in which a majority of the arbitrators are not connected with an NFA Member or NFA.
Notice Day - According to Chicago Board of Trade rules, the second day of the three-day delivery process when the clearing corporation matches the buyer with the oldest reported long position to the delivering seller and notifies both parties. See First Notice Day.
Notice of Appeal - The document a person must file with the adjudicating body in order to pursue an appeal.
Notice of Intent - The first formal pleading issued which begins a registration disqualification proceeding. It states the allegations which will be proven to show that an applicant or registrant is disqualified from CFTC registration.
Notional Amount - The amount (in an interest rate swap, forward rate agreement, or other derivative instrument) or each of the amounts (in a currency swap) to which interest rates are applied (whether or not expressed as a rate or stated on a coupon basis) in order to calculate periodic payment obligations.
Offer - The Forex rate at which a dealer is willing to sell a currency.
Office Recordkeeping Action Type - A violation arising from failure to make or preserve required office records.
Offset - Taking a second futures or options position opposite to the initial or opening position. See Liquidate.
Offsetting Transaction - A Forex market trading with which serves to cancel or offset some or all of the market risk of an open position.
Omnibus Account - An account of an originating FCM carried by a clearing FCM that combines the transactions of two or more accounts of the originating FCM in the name of the originating FCM rather than designating the accounts separately. The identity of the individual accounts is not disclosed to the carrying broker.
One Cancels the Other Order (OCO) - A designation for two orders whereby one part of the two orders is executed the other is automatically cancelled.
Out Trade - A trade which cannot be cleared by a clearing house because the data submitted by the two clearing members involved in the trade differs in some respect.
Out of the Money - A call option with a strike price higher or a put option with a strike price lower than the current market value of the underlying asset.
Over the Counter Market - A market where products such as stocks, foreign currencies, and other cash items are bought and sold by telephone and other means of communication.
Overbought - A technical opinion for which the market price has risen too steeply and too fast in relation to underlying fundamental factors. Opposite of Oversold.
Overnight - A Forex market trading that remains open until the next business day.
Oversold - A situation arising in the market after prompt and significant downturn of the price (Forex rate).
Over the Counter (OTC) - Used to describe any transaction that is not conducted over an exchange.
PBOT - Philadelphia Board of Trade.
Par - The face value of a security. For example, a bond selling at par is worth the same dollar amount it was issued for or at which it will be redeemed at maturity.
Pardon - A remission of punishment or penalty without indicating exoneration from guilt.
Partnership - An association of two or more people who agree to share in the profits and losses of a business venture.
Party - A claimant or respondent.
Payment-In-Kind Program - A government program in which farmers who comply with a voluntary acreage-control program and set aside an additional percentage of acreage specified by the government receive certificates that can be redeemed for government-owned stocks of grain.
Pegged Price - The price at which a commodity has been fixed by agreement.
Pegging - Effecting commodity transactions to offset a decline in the price of the commodity so that previously written put options will expire worthless, thus protecting premiums previously received.
Performance Bond - Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member or by a clearing member, with the Clearing House. The performance bond helps to ensure the financial integrity of brokers, clearing members and the exchange as a whole.
Performance Bond Call - A demand for additional funds because of an adverse price movement.
Performance Bond Margin - The amount of money deposited by both buyer and seller of a futures contract or an options seller to ensure performance of the term of the contract. Margin in commodities is not a payment of equity or down payment on the commodity itself, but rather it is a security deposit. See Customer Margin and Clearing Margin.
Project A - An electronic trading system for futures and options developed by the Chicago Board of Trade.
Promotional Material - Any text of a standardized oral presentation, or any communication for publication in any newspaper, magazine or similar medium, or for broadcast over television, radio, or other electronic medium, which is disseminated or directed to the public concerning a futures account, agreement or transaction; any standardized form of report, letter, circular, memorandum or publication which is disseminated or directed to the public; and any other written material disseminated or directed to the public for the purpose of soliciting a futures account, agreement or transaction.
Proof of Service - A court paper filed as evidence that the witness or party to the lawsuit was served with the papers.
Pulpit - A raised structure adjacent to, or in the center of, the pit or ring at a futures exchange where market reporters, employed by the exchange, record price changes as they occur in the trading pit.
Punitive Damages - An amount intended to punish outrageous conduct.
Purchase and Sell Statement - A Statement sent by a commission house to a customer when his futures or options on futures position ha changed, showing the number of contracts bought or sold, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges, and the net profit or loss on the transaction.
Purchasing Hedge or Long Hedge - Buyer futures contracts to protect against a possible price increase of cash commodities that will e purchased in the future. At the time the cash commodities are bought, the open futures position is closed by selling an equal number and type of futures contracts as those that were initially purchased. Also referred to as a buying hedge. See Hedging.
Put Option - An option that gives the option buyer the right, but not the obligation, to sell the underlying futures contract at a particular price on or before a particular date.
Pyramiding - Construction of a trading pyramid. The trading tactics consisting in gradual increase of an available open position.