See Cash Commodity.
The policy under which all futures positionsowned or controlled by one trader or a groupof traders are combined to determine report-able positions and speculative limits.
The simultaneous purchase and sale of similarcommodities in different markets to take ad-vantage of a price discrepancy.
The process of settling disputes between par-ties by a person or persons chosen or agreedto by them. NFA’s arbitration program providesa forum for resolving futures-related disputesbetween NFA Members or between Membersand customers.
Associated Person (AP)
An individual who solicits orders, customersor customer funds on behalf of a FuturesCommission Merchant, an Introducing Broker,a Commodity Trading Advisor or a CommodityPool Operator and who is registered with theCommodity Futures Trading Commission.
An option whose strike price is equal—orapproximately equal—to the current marketprice of the underlying futures contract.
A futures market in which the relationshipbetween two delivery months of the samecommodity is abnormal. The opposite of Contango.
See also Inverted Market.
The difference between the current cashprice of a commodity and the futures priceof the same commodity.