Definitions

Question 1

Floor Broker

Answer 1

Work on the floor of an exchange and fill orders from thier own Inventories or match incoming buy and sell orders from customers.

Question 2

Floor Trader

Answer 2

Trade thier own accounts on trading floor.

“Also called locals”

Question 3

Clearing Houses

Answer 3

Affilated with Future Exchanges, they ensure financial integrity of the market place by guranteeing futures trades. “They are a counter-party”

Question 4

IMM

Answer 4

Part of the CME Group, trades currencies and interest rate futures.

Question 5

The CME Group

Answer 5

Worlds largest Futures and Options Exchange.

Question 6

Closing Range

Answer 6

A range of prices at which future transactions took place during the close of the market.

Question 7

Settlement Date

Answer 7

Last trade of the day.

Question 8

Tick

Answer 8

Minimal price change for a particular contract.

Question 9

Clearing Member

Answer 9

A firm that is a member of a clearing house associated with an exchange and has responsibilty for settling customer trades.