Market Glossary

• BULL MARKET - A market characterized by rising prices.
• BUYING HEDGE - A hedge that is initiated by taking a long position in the futures market equal to the amount of the cash commodity which eventually needed.
• CHART - Futures prices plotted in a way that the chartist believes gives insight into futures price movements. Several futures markets are regularly influenced by buying or selling based on traders' price chart indications.
• LIQUIDATION - The closing out of a previous position by taking an opposite position in the same contract.
• MARGIN CALL - A demand by a broker for additional funds sufficient to raise your deposit on a commodity futures contract above the minimum acceptable level.
• NEW YORK MERCANTILE EXCHANGE (NYMEX) - Founded in 1872 as a market for cheese, butter, eggs, its principle commodities today include heating oil and petroleum products.
• SETTLEMENT PRICE - The price at which the clearing house clears all transactions at the close of the day.
• SHORT - A trader who has sold futures, speculating that prices will decline.
• SPECULATION - Buying or selling in hopes of making a profit.
• VOLUME - The number of purchases and sales of a commodity made during a specified period of time.