underlying futures contract
121Box spread — In options trading, a box spread is a combination of positions that has a certain ( i.e. riskless) payoff, considered to be simply delta neutral interest rate position . For example, a bull spread constructed from calls ( e.g. long a 50 call,… …
122long — One who has bought futures contracts or owns a cash commodity. Chicago Board of Trade glossary One who has purchased futures contracts or the cash commodity, but has not taken any action to offset his position. Also, purchasing a futures contract …
123Spread trade — In finance, a spread trade refers to the act of buying one security or futures contract and selling another related one, in an attempt to profit from the change in the price difference between the two.As expiry of a long contract and delivery of… …
124Delivery Date — 1. The final date by which the underlying commodity for a futures contract must be delivered in order for the terms of the contract to be fulfilled. 2. The maturity date of a currency forward contract. All futures and forward contracts have a… …
125Narrow Basis — A condition found in futures markets in which the spot price of underlying commodities is close to the futures price of the same contract. A narrow basis suggests that the market is efficient, as the supply of and demand for the underlying… …
126Last trading day — The final day under an exchange s rules during which trading may take place in a particular futures or options contract. Contracts outstanding at the end of the last trading day must be settled by delivery of underlying physical commodities or… …
127Delivery Month — A key characteristic of a futures contract that designates when the contract expires and when the underlying asset must be delivered. The exchange on the futures contract is traded will also establish a delivery location and a date within the… …
128Cost of carry — This article is about the financial term. For the marketing term, see Carrying cost. The cost of carry is the cost of carrying or holding a position. If long, the cost of carry is the cost of interest paid on a margin account. Conversely, if… …
