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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. | |
| D | |
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| Term | Definition |
|---|---|
| Delivery Month | The month during which a futures contract can be fulfilled. NQLX Single Stock Futures cease trading at the close of the market on the third Friday of the delivery month, and delivery occurs on the third business day following the last trading day. |
| Derivative Contract | A financial instrument whose value is linked to or determined by another security’s or index’ value. A Single Stock Future is a derivative contract, since its value is function of the price of the underlying asset. |
| Discount | A reduction in the expected price produced by factors such as higher interest rates or the use of the future as a hedging instrument. |
| Dividend | A payment made by a corporation to its shareholders. |
| Downtick | This state of when a security sells for less than its previous transaction price. A securities regulation, the “downtick rule,” currently prevents the short sale of stock on a downtick. |