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Futures Terms |
| Browse our glossary of terms by using the Alphabet below. You may also search the glossary by using the search box in the right column. | |
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| Term | Definition |
|---|---|
| Call Option | The buyer of a call option has the right, but not the obligation, to buy an underlying asset at a specified “strike” price on (in the case of a "European"-style exercise) or by (in the case of an "American"-style exercise) a specified expiration date. The buyer pays the seller a “premium,” and may profit if the price of the underlying asset is at a level above the strike price plus the premium paid, by the call’s expiration date. The seller of a call option receives and keeps the premium, but may have to sell the stock if the buyer "exercises" the option. Buyers and sellers of call options may offset their position. |
| Carry Curve | The state wherein futures prices trade at a price over that of the stock. |
| Cash Settlement | The tender or receipt of money in lieu of the the contract's underlying commodity to fulfill the delivery requirements of the futures contract. NQLX Single Stock Futures are physically delivered, and are not subject to a cash settlement. |
| Class of Options | A put or a call covering the same underlying futures contract or underlying physical commodity. |
| Clearing | The process of recognizing that a trade has occurred, and paying for and receiving payment for securities after they have been traded. The process of clearing is generally handled by a central entity, the "clearing house." NQLX Single Stock Futures are cleared by the Options Clearing Corporation. |
| Commodity Futures | The executive agency of the U.S. federal government responsible for regulating futures exchanges and the contracts trading thereon, and for enforcing the rules of fair practice and disclosure. |
| Commodity Futures Trading Commission | The executive agency of the U.S. federal government responsible for regulating futures exchanges and the contracts trading thereon, and for enforcing the rules of fair practice and disclosure. |
| Constructive Sale | An action taken that effectively creates a sale of an asset by creating a nearly equal and opposite cash flow. |
| Contract Market | Any board of trade (exchange) located in the United States which has been designated by the Commodity Futures Trading Commission to list a futures contract or commodity option for trading. |
| Contract Size | The number of shares of the underlying security represented by the futures contract. |
| Corporate Actions / Corporate Event | Changes in the structure of the corporate or in the price and/or quantity of a stock produced by a proactive measure of the issuing corporation. Such measures may include stock splits, stock consolidation, special dividends, and spin offs. |