Glossary |
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GLOBEX
A global electronic trading environment created by the Chicago Mercantile Exchange (CME). A permitted trader can trade CME or NYMEX products thru the GLOBEX system.
Good-Till-Cancelled Order
An order which remains in active until it is cancelled, executed, or the contract expires.
Grain Terminal
The largest of grain elevator facilities with the capacity to ship grain by rail and/or barge to domestic and foreign marketplaces.
Gross Domestic Product (GDP)
The monetary value of all the finished goods and services produced within a country's borders during a specific time period, though GDP is usually calculated on an annual basis, it is released quarterly. It includes private and public consumption, government outlays, investments and exports less imports that occur within a defined economy.
Gross National Product (GNP)
An economic statistic that includes GDP, plus any income earned by citizens working overseas, minus income earned within the domestic economy by overseas residents.
Gross Processing Margin (GPM)
The difference between the cost of soybeans and the combined sales income of the processed soybean oil and meal.
Hedger
An individual or company owning or planning to own a cash commodity like corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc. that is concerned the cost of the commodity may change before either buying or selling it in the cash market. A hedger achieves protection against changing cash prices by purchasing or selling futures contracts of the same or similar commodity and later offsetting that position by selling (purchasing) futures contracts of the same quantity and type as the initial transaction.
Hedging
Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract
High
The highest price of the day for a particular futures contract.
Hit
A trader is said to be "hitting" the bid when he/she initiates a trade that sells directly to the bid quantity. This trader probably believes that the contract price will fall & is willing to give the perceived edge to another trading by selling into his/her bid.
Hog/Corn Ratio
The relationship of feeding costs to the dollar value of hogs. It is measured by dividing the price of hogs ($/hundredweight) by the price of corn ($/bushel). When corn prices are high relative to pork prices, fewer units of corn will equal the dollar value of 100 pounds of pork. Conversely, when corn prices are low in relation to pork prices, more units of corn are required to equal the value of 100 pounds of pork. See Feed Ratio.
Horizontal Spread
The purchase of either a call or put option and the simultaneous sale of the same type of option with typically the same strike price but with a different expiration month. Also, referred to as a calendar spread.
