Glossary

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Uncovered Call Option Writing

A short call option position in which the writer does not own an equivalent position in the underlying security represented by their option contracts. Risk, in this case, is unlimited as the price of the underlying asset has no upside limit.

Uncovered Put Option Writing

A short put option position, in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. Risk, in this case, is limited to the price of the underlying falling to zero.

U.S. Treasury Bill

A short-term U.S. government debt instrument with an original maturity of one year or less. Bills are sold at a discount from par with the interest earned being the difference between the face value received at maturity and the price paid.

U.S. Treasury Bond

Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannual basis via its coupon.

U.S. Treasury Note

Government-debt security with a coupon and original maturity of one to 10 years. Interest is paid via its coupon.

Variation Margin

A variable margin payment that is made by clearing members to their respective clearing houses based upon adverse price movements of the futures contracts that these members hold.

Vertical Spread

Buying and selling puts or calls of the same expiration month but different strike prices.

Volatility

A measure for the change in price over a given time period. It is often expressed as a percentage and computed as the annualized standard deviation of percentage change in daily price.

Volume

The number of shares or contracts traded in a security or an entire market during a given period of time. It is simply the amount of shares that trade hands from sellers to buyers as a measure of activity. If a buyer of a futures contract purchases 100 contracts from a seller, then the volume for that period increases by 100 contracts based on that transaction.

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.