Word of the DayWelcome to Investmenterms.com, a comprehensive dictionary for commodity futures traders.
Ask
The price level of an offer, as in bid-ask spread.
Weighting
The relative proportion of each of a group of securities or asset classes within a single investment portfolio.
Barclay Index
The Barclay CTA Index measures the composite performance of established programs. For purposes of this index, an established trading program is a trading program that has four years or more documented performance history. Once a trading program passes this four-year hurdle, its subsequent performance is included in this unweighted index. The Barclay Index does not represent an actual portfolio, which could be invested in, and therefore the index performance results should be deemed to be hypothetical in nature and of comparative value only.
One Cancels the Other (OCO) Order
A pair of orders, typically limit orders, whereby if one order is filled, the other order will automatically be cancelled. For example, an OCO order might consist of an order to buy 10 calls with a strike price of 50 at a specified price or buy 20 calls with a strike price of 55 (with the same expiration date) at a specified price.
Speculating
Buying and selling futures contracts with the hope of profiting from anticipated price movements.
Volume
The number of contracts bought or sold during a specified period of time. This figure includes liquidating transactions.