| pit: | An octagonal platform on the trading floor of an exchange, consisting of steps upon which traders and brokers stand while trading (If circular. called a "ring").
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| point: | The minimum unit In which changes in futures prices may be expressed (minimum price fluctuation may be in multiples of points).
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| position: | An interest in the market in the form of open commitments.
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| premium: | The amount by which a given futures contract's price or commodity's quality exceeds that of another contract or commodity (opposite of discount). In options, the price of a call or put, which the buyer initially pays to the option writer (seller).
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| price limit: | The maximum fluctuation in price of a futures contract permitted during one trading session, as fixed by the rules of a contract market.
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| purchase and sale statement: | A statement sent by the FCM to a customer when his futures position has been reduced or closed out (also called "P and S").
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| put: | In options. the buyer of a put has the right to acquire a short position in the underlying futures contract at the strike price until the option expires; the seller (writer) of the put obligates himself to take a long position in the futures at the strike price if the buyer exercises his put.
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| range: | The difference between the high and low price of the futures contract during a given period.
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| ratio hedging: | Hedging a cash position with futures on a less or more than one-for-one basis.
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| reaction: | The downward tendency of a commodity after an advance.
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| round-turn: | The execution for the same customer of a purchase transaction and a sales transaction which offset each other.
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| round-turn commission: | The cost to the customer for executing a futures contract which is charged only when the position is liquidated.
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