The net worth of a commodity account as determined by combining the ledger balance with any unrealized gain or loss in open positions as marked to the market.
The agent of a commission house who serves customers/traders by entering their commodity futures and options orders, reporting trade executions, advising on trading strategies, etc.
In the metals markets, the nearest base contract month that is not the current delivery month. The base months for each metals futures are defined by each individual contract. For other contracts this may designate the closest month to expiration or the expiration month that has the most trading volume.
ACT or CEA
The term “Act” or “CEA” shall mean the Commodity Exchange Act, as amended from time to time.
An actual physical commodity someone is buying or selling, e.g., soybeans, corn, gold, silver, Treasury bonds, etc.
Adjusted Futures Price
The cash-price equivalent reflected in the current futures price. This is calculated by taking the futures price times the conversion factor for the particular financial instrument (e.g., bond or note) being delivered.
A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as “Exchange for Physicals” (EFP) or “versus cash”.
Allocation Claim System (ACS)
CME’s electronic give-up system. ACS allows executing firms to give-up (allocate) trades at the execution price to the designated carrying firms(s), utilizing their current trade entry systems and CME’s Trade Management System. ACS may be utilized for trades executed and given up to a single firm, as well as trades given up to multiple firms (see Give-up System).
Alternative Delivery Procedure (ADP)
A provision of a futures contract that allows buyers and sellers to make and take delivery under terms or conditions that differ from those prescribed in the contract. An ADP may occur at any time during the delivery period, once long and short futures positions have been matched for the purpose of delivery.
American Gas Association (AGA)
American Gas Association. Major natural gas industry trade association, based in Alexandria, Virginia. AGA conducts technical research and helps create standards for equipment and products involved in every facet of the natural gas industry. It also compiles statistics which are considered industry standards.
American Petroleum Institute (API)
The primary U.S. oil industry trade association, based in Washington, D.C. API conducts research and sets technical standards for industry equipment and products from wellhead to retail outlet. It also compiles statistics which are regarded as industry benchmarks.
American Society for Testing Materials (ASTM)
Grade and quality specifications for petroleum products and metals are determined by the ASTM in test methods.
Type of option contract that can be exercised at the buyer’s discretion on any trading day up to and including the expiration date. This differs from a European style option, which may only be exercised on its expiration date.
All or None (AON)
An order type, if the order can execute in total, then it executes. Otherwise it stays in the order book until it can execute in total.
The scale created by the American Petroleum Institute to indicate the ‘lightness’ or ‘heaviness’ of crude oils and other liquid hydrocarbons. Calibrated in API degrees (or degrees API), it is used to expresses the relative density of oil.The scale is an inverse measure- the lighter the crude the higher the API gravity, and vice versa.The higher the API degree, the higher the market value of the hydrocarbon being measured. Oil with API greater than 30º is termed light; between 22º and 30º, medium; below 22º, heavy; and below 10º, extra heavy.
Application Program Interface (API)
The specific method prescribed by a computer operating system or by an application program by which a programmer writing an application program can communicate with the operating system or another application.