Commodities

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The subsidy for the administrative and operating expenses paid by FCIC on behalf of the policyholder to the insurer for eligible crop insurance contracts.

To elect not to exercise or offset a long option position.

Non-competitive trading entered into by a trader, usually to assist another with illegal trades

The Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)

The yield per acre for a crop year which is determined by dividing total production (includes both harvested and appraised production) by planted acres.

The physical or cash commodity, as distinguished from a futures contract. See Cash and Spot Commodity.

The chemical symbol for silver.

A debt security issued by a government-sponsored enterprise such as Fannie Mae or Freddie Mac, designed to resemble a U.S. Treasury bond.

A debt security issued by a government-sponsored enterprise such as Fannie Mae or Freddie Mac, designed to resemble a U.S. Treasury note.

The principle under which all futures positions owned or controlled by one trader (or group of traders acting in concert) are combined to determine reporting status and compliance with speculative position limits.

Adjusted Gross Revenue. This plan insures the revenue of the entire farm, rather than an individual crop, by guaranteeing a percentage of average gross farm revenue, including a small amount of livestock revenue. The plan uses information from a producer`s Schedule F tax forms to calculate the policy revenue guarantee. Five continuous years of tax data are used to calculate the average AGR.

The combination of the producing operations of a farm, the manufacture and distribution of farm equipment and supplies and the processing, storage, and distribution of farm commodities.

Grain and non-grain crops, vegetables, fruits, nuts, nursery plants, floriculture, Christmas trees, maple tree sap, animals, products from animals such as milk, eggs, etc., and any other agricultural production, excluding timber, forest, and forest products.

Any person that is in the business of soliciting or entering option transactions involving an enumerated agricultural commodity that are not conducted or executed on or subject to the rules of an exchange.

The search throughout history for a chemical process that would turn Base Metals into gold.

Gold bullion held by a bank on behalf of the owner. The gold is separated from other metal that may be held by the bank and is identified by its unique bar numbers. See Unallocated Gold.

The discounts (premiums) allowed for grades or locations of a commodity lower (higher) than the par (or basis) grade or location specified in the futures contract. See Differentials.

Gold which has been mixed with another metal to provide certain characteristics, (such as colour or hardness) is known as an alloy. Common alloys used in the jewellery industry are 22 carat, 18 ct, 14 ct & 9 ct. Pure gold is 24 carat.

An option that can be exercised at any time prior to or on the expiration date. See European Option.

Actual Production History. A measure of an individual farmer`s "normal" crop yield in the crop insurance program. When the actual crop yield deviates by more than a certain percentage from the APH, an insured producer is eligible for an indemnity (loss) payment.

Any bank, stockyard, mill, storehouse, plant, elevator, or other depository that is authorized by an exchange for the delivery of commodities tendered on futures contracts.

Gold nuggets and particles which are found in rivers and streams and are recovered by dredging or panning methods.

The actual production history (APH) yield, calculated and approved by the verifier, used to determine the production guarantee by summing the yearly actual, assigned, adjusted or unadjusted yields contained in the database, which will always contain at least four yields. The database may contain up to ten consecutive crop years of actual or assigned yields.

A strategy involving the simultaneous purchase and sale of identical or equivalent commodity futures contracts or other instruments across two or more markets in order to benefit from a discrepancy in their price relationship. In a theoretical efficient market, there is a lack of opportunity for profitable arbitrage. See Spread.

A process for settling disputes between parties that is less structured than court proceedings. The National Futures Association arbitration program provides a forum for resolving futures-related disputes between NFA members or between NFA members and customers. Other forums for customer complaints include the American Arbitration Association.

A futures price that has been affected by a manipulation and is thus higher or lower than it would have been if it reflected the forces of supply and demand.

An exotic option whose payoff depends on the average price of the underlying asset during some portion of the life of the option.

The price level of an offer, as in bid-ask spread.

The act of testing gold or silver to determine its purity.

A contract that allows the holder to convey his rights to a third party. Exchange-traded contracts are not assignable.

Designation by a clearing organization of an option writer who will be required to buy (in the case of a put) or sell (in the case of a call) the underlying futures contract or security when an option has been exercised, especially if it has been exercised early.

An individual who solicits or accepts (other than in a clerical capacity) orders, discretionary accounts, or participation in a commodity pool, or supervises any individual so engaged, on behalf of a futures commission merchant, an introducing broker, a commodity trading advisor, a commodity pool operator, or an agricultural trade option merchant.

An order to buy or sell a futures contract at whatever price is obtainable when the order reaches the trading facility. See Market Order.

When an option's strike price is the same as the current trading price of the underlying commodity, the option is at-the-money.

The chemical symbol for gold.

A debt security, typically issued by a municipality, in which the yield is reset on each payment date via a Dutch auction.

The record of trading information identifying, for example, the brokers participating in each transaction, the firms clearing the trade, the terms and time or sequence of the trade, the order receipt and execution time, and, ultimately, and when applicable, the customers involved.

Restrike bullion gold coin containing .9802 ounce of gold

A provision in an option contract specifying that it will be exercised automatically on the expiration date if it is in-the-money by a specified amount, absent instructions to the contrary.

The average of a day's high and low temperatures, from midnight to midnight.

A system of weights for commodities except precious metals, stones, and drugs. One avoirdupois ounce equals 28.35 grams or 437.50 grains.