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Trading Glossary
 
 
GLOSSARY OF SPREAD TRADING TERMS
Buy: Take a "long" position

Delivery month: The specified month in which a futures contract is delivered or expires.  These are normally March, June, September and December.

Down Trade: A trade taken in anticipation of a falling market, to "go short"

Fill: The execution of an order

Guaranteed Stop: This is a controlled risk trade where you are guaranteed to exit your position at your chosen level irrespective of volatility, incurring a small initial charge.

Last Day of Dealing: The last day on which a client can open or close a trade in a relevent market.

Limit Order: An order to buy or sell if the market reaches a specified price or level, more favourable than the current market level.

Long: A trade taken in anticipation of a rising market - "an up trade"

Margin: The total amoun t of resources you need to open and maintain a position.

Margining: The practice by which your spread trade company may request that you deposit further funds to run a loss making position.

Maturity Date: The date and time when a trade expires.

Offer: The price at which your spread trade company sells and you can buy.

Rollover: The transfer of an open trade from one expiry month to a later month.

Sell: Take a short position.

Spread: The difference between the buying and selling prices on a spread trade company's quote.

Short: A trade taken in anticipation of a falling market.

Stop Loss: An order to buy or sell of the market reaches a specified price less favourable than the current market level.  NOTE: this does not gurantee exit. (compare guarantee stop loss)

Settlement Price: The price used for daily revaluation of open trades.

Tick: The standardised minimum price movement of a futures or options trade.

Up Trade: A trade taken in anticipation of a rising market; to "go long".

 
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