Arbitrage: A strategy which involves the simultaneous purchase and sale of identical or equivalent futures contracts across more than one market to benefit from an often temporary discrepancy in their price relationship.
Ask: The expression of a price at which to sell a contract
At-the-Market: An order to buy or sell a contract at the best available price upon reaching the trading venue (trading floor or electronic platform)
Back Months: Delivery months for futures contracts other than the front or spot month.
Backwardation: The opposite of contango; a futures market with successively lower prices in further out contract months.
Basis: The difference between the cash price of a commodity and the nearest futures month price for the same or similar commodity.
Basis Point: A measurement of a change in the yield of a debt security. One basis point equals 1/100 of one percent.
Bear: An expression for a person who expects prices to decline.
Bear Market: An expression for a market in decline over a period of time.
Bear Spread: A trade design with a simultaneous purchase and sale of related - but not identical contracts – with the intent to benefit from a decline in prices.
Bid: An offer to buy a specific quantity of a commodity at a stated price.
Bid-Ask Spread: The price difference between the bid and ask quotes.
Bull: A term to describe a person who expects prices to rise.
Bull Market: A term to describe a market in which prices are rising over a period of time.
Bull Spread: A trade design with a simultaneous purchase and sale of related - but not identical contracts – with the intent to benefit from a rise in prices.
Buy (or Sell) On Close: The designation to execute the order at the end of the trading session within the closing price range.
more futures glossary at BondFuturesTrading.com
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