Many thanks goes out to Christine Grace for providing me with this glossary. Her website can be found here: www.bestrades.net
Terms used in the S&P trading pit. Listed in alphabetical order A - E
##Times
The number of times traders/institutions are bidding or offering. For example, …offered ten TIMES." "20 up" S&P 500 Term
E.g. There are 20 contracts bid for and 20 contracts offered. Arbitrage General Floor Term
The simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures in order to benefit from a discrepancy in their price relationship. Ask General Floor Term
One "asks" a price when he offers a contract for sale. Indicates a willingness to sell a futures contract at a given price. At S&P 500 Term
Same as offer: e.g. 10 at 20 indicates that someone wants to sell 10 for 20 S&Ps. Back Months General Floor Term
The months being traded for futures or options-on-futures that are furthest from expiration. Barney S&P 500 Term
Smith Barney. Bear General Floor Term
One who believes prices will move lower. Bear Market General Floor Term
A market in which prices are declining. Best
Highest Bid or lowest offer at that given time. Bid General Floor Term
The price that the market participants are willing to pay. The current price you would get if you sold at market. This also means someone wants to buy contracts. Bid S&P 500 Term
The price a buyer is willing to pay, E.g. 20 bid on a hundred: they want to pay 20. Brokers S&P 500 Term
Order fillers executing for the public. Bull General Floor Term
One who expects prices to rise. Bull Market General Floor Term
A market in which prices are rising. Buy On Close General Floor Term
To buy at the end of a trading session at a price within the closing range. Buy On Opening General Floor Term
To buy at the beginning of a trading session at a price within the opening range. Cabinet Trade (or "Cab") General Floor Term
A trade that allows options traders to liquidate deep out-of-the-money options by trading the option at a price equal to one-half tick. Call General Floor Term
An option to buy a commodity, security or futures contract at a specified price anytime between now and the expiration date of the option contract. Car
Carried from long ago, from grains at the CBOT, in which a "Car" was a contract that represented one railroad cargo car -- and still does. We say it instead of a "Contract", as slang, since its one syllable, and as the professionals know, is the preferred terminology on the trading floor. To recap: "XYC Co sells 100 Cars not held" means they just sold 100 Contracts with broker discretion to execute the order at the market. Cash Commodity General Floor Term
The actual physical commodity as distinguished from a futures commodity. CFTC General Floor Term
The Commodity Futures Trading Commission as created by the Commodity Futures Trading Commission Act of 1974. This government agency currently regulates the nation's commodity futures industry. Choppy
No real trend. Market is erratic and usually controlled by locals. Close The General Floor Term
The period at the end of the trading session. Sometimes used to refer to the closing range. (see Opening, The) Closing Range (or Range) General Floor Term
The high and low prices, or bids and offers, recorded during the period designated as the official close. (see Settlement Price) Commission (or Round Turn) General Floor Term
The one-time fee charged by a broker to a customer when a futures or options-on-futures position is liquidated either by offset or delivery. Contract General Floor Term
Unit of trading for a financial or commodity future. Also, actual bilateral agreement between the parties (buyer and seller) of a futures or options-on-futures transaction as defined by an exchange. The terms of this type of contract include price, month... Contract Month General Floor Term
The month in which futures contracts may be satisfied by making or accepting delivery. (see Delivery) Day Order General Floor Term
An order that is placed for execution during only one trading session. If the order cannot be executed that day, it is automatically cancelled. Day Trading General Floor Term
Refers to establishing and liquidating the same position or positions within one day's trading, thus ending the day with no established position in the market. Deferred General Floor Term
Another term for "back months." Delivery General Floor Term
The tender and receipt of an actual commodity or financial instrument, or cash in settlement of a futures contract. Discount S&P 500 Term
The futures price below the cash price. Even S&P 500 Term
Price is at an even dollar level: 975.00 or 1,332.00, for example. E.g. 989.00 a.k.a. "the buck". Even up S&P 500 Term
There are as many contracts bid for as offered. Exercise or Strike Price General Floor Term
The price at which the holder (buyer) may purchase or sell the underlying futures contract upon the exercise of an option. Expiration Date General Floor Term
The last day that an option may be exercised into the underlying futures contract. Also, the last day of trading for a futures contract.
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Many thanks goes out to Christine Grace for providing me with this glossary. Her website can be found here: www.bestrades.net
Terms used in the S&P trading pit. Listed in alphabetical order A - E
##Times
The number of times traders/institutions are bidding or offering. For example, …offered ten TIMES."
"20 up" S&P 500 Term
E.g. There are 20 contracts bid for and 20 contracts offered.
Arbitrage General Floor Term
The simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures in order to benefit from a discrepancy in their price relationship.
Ask General Floor Term
One "asks" a price when he offers a contract for sale. Indicates a willingness to sell a futures contract at a given price.
At S&P 500 Term
Same as offer: e.g. 10 at 20 indicates that someone wants to sell 10 for 20 S&Ps.
Back Months General Floor Term
The months being traded for futures or options-on-futures that are furthest from expiration.
Barney S&P 500 Term
Smith Barney.
Bear General Floor Term
One who believes prices will move lower.
Bear Market General Floor Term
A market in which prices are declining.
Best
Highest Bid or lowest offer at that given time.
Bid General Floor Term
The price that the market participants are willing to pay. The current price you would get if you sold at market. This also means someone wants to buy contracts.
Bid S&P 500 Term
The price a buyer is willing to pay, E.g. 20 bid on a hundred: they want to pay 20.
Brokers S&P 500 Term
Order fillers executing for the public.
Bull General Floor Term
One who expects prices to rise.
Bull Market General Floor Term
A market in which prices are rising.
Buy On Close General Floor Term
To buy at the end of a trading session at a price within the closing range.
Buy On Opening General Floor Term
To buy at the beginning of a trading session at a price within the opening range.
Cabinet Trade (or "Cab") General Floor Term
A trade that allows options traders to liquidate deep out-of-the-money options by trading the option at a price equal to one-half tick.
Call General Floor Term
An option to buy a commodity, security or futures contract at a specified price anytime between now and the expiration date of the option contract.
Car
Carried from long ago, from grains at the CBOT, in which a "Car" was a contract that represented one railroad cargo car -- and still does. We say it instead of a "Contract", as slang, since its one syllable, and as the professionals know, is the preferred terminology on the trading floor. To recap: "XYC Co sells 100 Cars not held" means they just sold 100 Contracts with broker discretion to execute the order at the market.
Cash Commodity General Floor Term
The actual physical commodity as distinguished from a futures commodity.
CFTC General Floor Term
The Commodity Futures Trading Commission as created by the Commodity Futures Trading Commission Act of 1974. This government agency currently regulates the nation's commodity futures industry.
Choppy
No real trend. Market is erratic and usually controlled by locals.
Close The General Floor Term
The period at the end of the trading session. Sometimes used to refer to the closing range. (see Opening, The)
Closing Range (or Range) General Floor Term
The high and low prices, or bids and offers, recorded during the period designated as the official close. (see Settlement Price)
Commission (or Round Turn) General Floor Term
The one-time fee charged by a broker to a customer when a futures or options-on-futures position is liquidated either by offset or delivery.
Contract General Floor Term
Unit of trading for a financial or commodity future. Also, actual bilateral agreement between the parties (buyer and seller) of a futures or options-on-futures transaction as defined by an exchange. The terms of this type of contract include price, month...
Contract Month General Floor Term
The month in which futures contracts may be satisfied by making or accepting delivery. (see Delivery)
Day Order General Floor Term
An order that is placed for execution during only one trading session. If the order cannot be executed that day, it is automatically cancelled.
Day Trading General Floor Term
Refers to establishing and liquidating the same position or positions within one day's trading, thus ending the day with no established position in the market.
Deferred General Floor Term
Another term for "back months."
Delivery General Floor Term
The tender and receipt of an actual commodity or financial instrument, or cash in settlement of a futures contract.
Discount S&P 500 Term
The futures price below the cash price.
Even S&P 500 Term
Price is at an even dollar level: 975.00 or 1,332.00, for example. E.g. 989.00 a.k.a. "the buck".
Even up S&P 500 Term
There are as many contracts bid for as offered.
Exercise or Strike Price General Floor Term
The price at which the holder (buyer) may purchase or sell the underlying futures contract upon the exercise of an option.
Expiration Date General Floor Term
The last day that an option may be exercised into the underlying futures contract. Also, the last day of trading for a futures contract.
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