Secured Loans
A term used to designate all contracts covering the sale of financial instruments
or physical commodities for future delivery on a commodity exchange.
Future investment opportunities
The options to identify additional, more valuable investment opportunities in the
future that result from a current opportunity or operation.
Futures
A term used to designate all contracts covering the sale of financial instruments
or physical commodities for future delivery on a commodity exchange.
Futures commission merchant
A firm or person engaged in soliciting or accepting and handling orders for the
purchase or sale of futures contracts, subject to the rules of a futures exchange
and, who, in connection with such solicitation or acceptance of orders, accepts
any money or securities to provide margin for any resulting trades or contracts.
The FCM must be licensed by the C.F.T.C.. Related: commission house,
omnibus account
Futures contract
Agreement to buy or sell a set number of shares of a specific stock in a
designated future month at a price agreed upon today by the buyer and seller.
The contracts themselves are often traded on the futures market. A futures
contract differs from an option because an option is the right to buy or sell,
whereas a futures contract is the promise to actually make a transaction. A future
is part of a class of securities called derivatives, so named because such
securities derive their value from the worth of an underlying investment.
Futures contract multiple
A constant, set by an exchange, which when multiplied by the futures price gives
the dollar value of a stock index futures contract.
Futures market
A market in which contracts for future delivery of a commodity or a security are
bought or sold.
Futures option
An option on a futures contract. Related: options on physicals.
