Glossary

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Managed Futures

Represents an industry comprised of professional money managers known as commodity trading advisors who manage client assets on a discretionary basis, using global futures markets as an investment medium.

Margin Call

A call from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a required minimum level.

Market Order

An order to buy or sell futures of a given delivery month to be filled at the best possible price and as soon as possible. Time is of primary importance in the case of a market order.

Market Profile

Market Profile is a graphical organization of price and time information. Market Profile displays price on the vertical axis and time on the horizontal axis. Letters are used to symbolize time brackets. Market profile is an analytical decision support tool for traders and is not to be considered a trading system.

Mark-to-Market

The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value.

Minimum Price Fluctuation

Smallest increment of price movement possible in trading a given contract. Also called a point or a tick.

Moving-Average Charts

A statistical price analysis method of recognizing different price trends. A moving average is calculated by adding the prices for a predetermined number of days and then dividing by the number of days.

National Futures Association (NFA)

An industry-wide, industry-supported, self-regulatory organization for futures and options markets. The primary responsibilities of the NFA are to enforce ethical standards and customer protection rules; the NFA screens futures professionals for membership, audits and monitors professionals for financial and general compliance rules, and provides arbitration of futures-related disputes.

Nearby (Delivery) Month

The futures contract month closest to expiration. Also referred to as spot or front month.

Net Position

The difference between total open long and total open short position in any one or all combined futures contract months held by an individual or entity.

Notice Day

A day on which notices of intent to deliver pertaining to a specified delivery month may be issued. See First Notice Day.

Risk Disclaimer: PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. BE ADVISED THAT THERE IS SUBSTANTIAL RISK OF LOSS WHEN INVESTING IN FUTURES AND DERIVATIVE MARKETS, INCLUDING MANAGED FUTURES, FUTURES OPTIONS, AND FOREX. NO SYSTEM OR CTA TRADING PROGRAM CAN GUARANTEE PROFITS OR FREEDOM FROM LOSS. THESE INVESTMENTS MAY NOT BE SUITABLE FOR ALL INVESTORS. Lions Futures is legally obliged to inform investors of a potential conflict of interest in recommending CTAs, given that Lions Futures is compensated through fees or commissions by CTAs. This material and any views expressed herein are provided for information purposes only and should not be construed in any way as an endorsement or inducement to invest in any specific program. Before investing in any program, you must obtain, read and examine thoroughly its disclosure document or offering memorandum. Any performance included herein is based upon information that has been compiled by Lions Futures.com from CTA disclosure documents and by third party independent CTA tracking services such as Barclay Group, Ltd., AutumnGold, CTA Research Corp., CTA Info, Institutional Advisory Services Group, and International Traders Research. All sources we use are free to the public. Such information has not been independently reviewed or audited by Lions Futures.com or its affiliates and therefore neither Lions Futures.com nor its affiliates make any representation as to its accuracy or completeness.