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Traders Resources
Glossary
The Striker Online Glossary is a list of terms and concepts used in futures trading. This glossary continues to grow and we encourage you to visit if there are new terms or concepts you are unfamiliar with. In addition, you may contact one of our experienced brokers at 800-920-5808 for questions on trading terms, concepts or information.



Daily
The daily pattern (see abbreviations) indicating an interday trend.

Day Order
An order that if not executed expires automatically at the end of the trading session of the day it was entered.

Day Trade
The purchase and sale of a futures or an options contract in the same day, thus ending the day with no established position in the market or being flat.

Day Traders
Traders who take positions in the market and then liquidate them prior to the close of the trading day.

Dealer Option
A put or call on a physical commodity, not originating on or subject to the rules of an exchange, written by a firm which deals in the underlying cash commodity.

Debit
A sum owed.

Debit Balance
Accounting condition where the trading losses in a customerís account exceed the amount of equity in the customerís account.

Deck
All of the unexecuted orders in a floor brokerís possession.

Deferred Delivery
The distant delivery months in which futures or options trading is taking place, as distinguished from the nearby futures delivery month.

Delivery
The tender and receipt of an actual cash commodity or warehouse receipt or other negotiable instrument covering such market, in settlement of a futures contract or other forward financial transaction.

Delivery date
The date on which a financial instrument is to be/have been delivered/received.

Delivery Month
A calendar month during which a futures or options contract matures and becomes deliverable.

Delivery Notice
Notice from the clearinghouse of a sellerís intention to deliver the physical commodity against a short futures position; it precedes and is distinct from the warehouse receipt or shipping certificate, which is the instrument of transfer of ownership.

Delivery Points
Those locations designated by commodity exchanges at which stocks of a commodity represented by a futures contract may be delivered in fulfillment of the contract.

Delivery Price
The official settlement price of the trading session during which the buyer of futures contracts receives, through the clearinghouse, a notice of the sellerís intention to deliver and the price at which the buyer must pay for the commodities represented by the futures contract.

Delivery risk
In all foreign currency transactions there is a delivery risk between currency settlement hours outside the country involved, and the actual settlement hours in the country of the currency.

Delta
A measure of the relationship between an option price and its underlying futures contract or stock price. Delta measures how rapidly the value of an option moves in relation to the underlying value. It is the change in an option's price divided by the change in the price of the underlying instrument. An option whose price changes by $1 for every $2 change in the price of the underlying instrument, has a delta of 0.5.

Delta hedge
The partial offset of the exchange risk of a currency option by an opposite open currency spot position in the same foreign currency.

Derivative
A type of investment whose value depends on the value of other investments, indices or assets. Futures contracts and stock options are common types of derivatives.

Derivative
A complex investment whose value is derived from or linked to some underlying financial asset, such as a stock, bond, currency or mortgage. Derivatives may be listed on exchanges or traded privately over-the-counter. For example, derivatives may be futures, options, or mortgage-backed securities.

Discount
(1) A downward adjustment in price allowed for delivery of stocks of a commodity of lesser than deliverable grade against a futures contract. (2) Sometimes used to refer to the price difference between futures of different delivery months, as in the phrase ďJuly at a discount to May,Ē indicating that the price of the July future is lower than that of the May. (3) In general, the amount by which one market price is less than another.

Discretionary Account
An arrangement by which the holder of the account gives written power of attorney to another, often a broker, to make buying and selling decisions without notification to the holder; often referred to as a managed account or controlled account.

DMI-
Measures the downward movement of a market. Many analysts believe an indication of a bullish market occurs when the DMI- crosses under the DMI+. This signals an opportunity to establish a long position. Conversly, an indication of a bearish market occurs when the DMI- crosses above the DM+-. This provides an opportunity to establish a short position and/or liquidate any existing long positions.

DMI+
Measures the downward movement of a market. Many analysts believe an indication of a bullish market occurs when the DMI+ crosses under the DMI-. This signals an opportunity to establish a long position. Conversly, an indication of a bearish market occurs when the DMI+ crosses below the DMI-. This provides an opportunity to establish a short position and/or liquidate any existing long positions.
RISK DISCLOSURE STATEMENT - APRIL 2014

The risk of loss in trading commodity futures contracts can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should be aware of the following points:

(1) You may sustain a total loss of the funds that you deposit with your broker to establish or maintain a position in the commodity futures market, and you may incur losses beyond these amounts. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice, in order to maintain your position. If you do not provide the required funds within the time required by your broker, your position may be liquidated at a loss, and you will be liable for any resulting deficit in your account.

(2) The funds you deposit with a futures commission merchant for trading futures positions are not protected by insurance in the event of the bankruptcy or insolvency of the futures commission merchant, or in the event your funds are misappropriated.

(3) The funds you deposit with a futures commission merchant for trading futures positions are not protected by the Securities Investor Protection Corporation even if the futures commission merchant is registered with the Securities and Exchange Commission as a broker or dealer.

(4) The funds you deposit with a futures commission merchant are generally not guaranteed or insured by a derivatives clearing organization in the event of the bankruptcy or insolvency of the futures commission merchant, or if the futures commission merchant is otherwise unable to refund your funds. Certain derivatives clearing organizations, however, may have programs that provide limited insurance to customers. You should inquire of your futures commission merchant whether your funds will be insured by a derivatives clearing organization and you should understand the benefits and limitations of such

(5) The funds you deposit with a futures commission merchant are not held by the futures commission merchant in a separate account for your individual benefit. Futures commission merchants commingle the funds received from customers in one or more accounts and you may be exposed to losses incurred by other customers if the futures commission merchant does not have sufficient capital to cover such other customers' trading losses.

(6) The funds you deposit with a futures commission merchant may be invested by the futures commission merchant in certain types of financial instruments that have been approved by the Commission for the purpose of such investments. Permitted investments are listed in Commission Regulation 1.25 and include: U.S. government securities; municipal securities; money market mutual funds; and certain corporate notes and bonds. The futures commission merchant may retain the interest and other earnings realized from its investment of customer funds. You should be familiar with the types of financial instruments that a futures commission merchant may invest customer funds in.

(7) Futures commission merchants are permitted to deposit customer funds with affiliated entities, such as affiliated banks, securities brokers or dealers, or foreign brokers. You should inquire as to whether your futures commission merchant deposits funds with affiliates and assess whether such deposits by the futures commission merchant with its affiliates increases the risks to your funds.

(8) You should consult your futures commission merchant concerning the nature of the protections available to safeguard funds or property deposited for your account.

(9) Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market reaches a daily price fluctuation limit ("limit move").

(10) All futures positions involve risk, and a "spread" position may not be less risky than an outright

(11) The high degree of leverage (gearing) that is often obtainable in futures trading because of the small margin requirements can work against you as well as for you. Leverage (gearing) can lead to large

(12) In addition to the risks noted in the paragraphs enumerated above, you should be familiar with the futures commission merchant you select to entrust your funds for trading futures positions. Beginning July 12, 2014, the Commodity Futures Trading Commission will require each futures commission merchant to make publicly available on its Web site firm specific disclosures and financial information to assist you with your assessment and selection of a futures commission merchant.

ALL OF THE POINTS NOTED ABOVE APPLY TO ALL FUTURES TRADING WHETHER FOREIGN OR DOMESTIC. IN ADDITION, IF YOU ARE CONTEMPLATING TRADING FOREIGN FUTURES OR OPTIONS CONTRACTS, YOU SHOULD BE AWARE OF THE FOLLOWING ADDITIONAL RISKS:

(13) Foreign futures transactions involve executing and clearing trades on a foreign exchange. This is the case even if the foreign exchange is formally "linked" to a domestic exchange, whereby a trade executed on one exchange liquidates or establishes a position on the other exchange. No domestic organization regulates the activities of a foreign exchange, including the execution, delivery, and clearing of transactions on such an exchange, and no domestic regulator has the power to compel enforcement of the rules of the foreign exchange or the laws of the foreign country. Moreover, such laws or regulations will vary depending on the foreign country in which the transaction occurs. For these reasons, customers who trade on foreign exchanges may not be afforded certain of the protections which apply to domestic transactions, including the right to use domestic alternative dispute resolution procedures. In particular, funds received from customers to margin foreign futures transactions may not be provided the same protections as funds received to margin futures transactions on domestic exchanges. Before you trade, you should familiarize yourself with the foreign rules which will apply to your particular transaction.

(14) Finally, you should be aware that the price of any foreign futures or option contract and, therefore, the potential profit and loss resulting therefrom, may be affected by any fluctuation in the foreign exchange rate between the time the order is placed and the foreign futures contract is liquidated or the foreign option contract is liquidated or exercised.

THIS BRIEF STATEMENT CANNOT, OF COURSE, DISCLOSE ALL THE RISKS AND OTHER ASPECTS OF THE COMMODITY MARKETS.