Glossary: D

– D –

Day Order: A market order to stand for the present trading day. A day order will cancel and settle at the end of the trading day. Contrast with ‘Good ‘Til Cancelled’.

Day Traders: Commodity traders, generally members of the exchange on the trading floor, who take positions in commodities and then offset them prior to the close of trading on the same trading day.

Day Trading: This refers to setting up and offsetting the same position or positions within one day’s trading.

Deck: The orders for purchase or sale of futures and option contracts held by a floor broker.

Default: Failure to perform on a futures contract as required by exchange rules, such as failure to meet a margin call, or to make or take delivery.

Deficit: Where outgo exceeds income or expenses exceed receipts.

Deferred Futures: Also called Back Months. They can be defined as well as the futures contracts that expire during the most distant months.

Delivery: The tender and receipt of the actual commodity, or other instrument covering such a commodity, in settlement of a futures contract.

Delivery Date: The date on which the commodity or instrument of delivery must be delivered to complete the terms of a contract.

Delivery Instrument: A document used to affect delivery on a futures contract, such as a warehouse receipt or shipping certificate.

Delivery month: A specified month in which futures contracts can be settled by delivery.

Delivery Notice: The written notice given by the seller of his or her intention to make delivery against an open short futures position on a particular date.

Delivery Points: Those points designated by futures exchanges where stocks of a commodity represented by a futures contract may be delivered in fulfilment of the contract.

Delivery Price: This is the price set by the clearing house at which deliveries on futures are invoiced.

Deposit: The preliminary outlay required by a broker company of a client to open a futures position, it is returned upon liquidation of that position.

Depreciate: Decrease in value.

Discount: Less than par value, a future contract is selling for a lower price than the spot price when it is selling at a discount to the spot delivery.

Discount Bond: Discounted bond that is selling under the par value.

Dominant Future: Future having the largest number of open contracts.

Dumping: Selling goods in a foreign country cheaper than they are sold at home.

Duration: A measure of a bond’s price sensitivity to variations in interest rates.

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