|
Bid
An offer to buy a specific quantity of a commodity at a stated price.
CBOT
Chicago Board Of Trade.
Contract
An agreement made at a specific price for delivery on a certain day. The Emini Contracts are all cash based. Also known as Futures Contracts.
Day Trader
An active trader who opens and closes positions the same day and seldom hold positions after the close. A day trader usually trades very liquid markets like the S&P 500 Eminis, ERussell Eminis, Dow Eminis, and Nasdaq Eminis.
Emini
A mini contract that is traded exclusively on an electronic trading facility. E-Mini is a trademark of the Chicago Mercantile Exchange.
Dow Eminis
The emini futures market that is a basket of 30 stocks. It is the average of the Dow Jones Industrial Average.
Russell Eminis
The emini futures market that is a stock index of 2000 stocks.
Front Month
The current trading month. The S&P 500 Eminis trade 4 contract months: March, June, September, and December.
Futures
Market trading in contracts to buy and sell a particular commodity at a fixed price on a certain date.
|
|
Limit Order
An order to enter a position at a set price or better.
Market Order
An order to enter a position at the next available price.
Mini
Refers to a futures contract that has a smaller contract size than an otherwise identical futures contract.
Options
Options are a contract that give the buyer the right, not the obligation to buy or sell the underlying security at a specified price (Strike Price) at a specified date.
Stock Index
An average of a basket of stocks, that are usually weighted, meaning some stocks have more "juice" in the index price than others. Some examples of stock indexes are: S&P 500 Eminis, ERussell Eminis, and Dow Eminis.
Swing Trading
Opposite of daytrading. Swing Traders speculate longer term on prices of stocks, futures, etc.
Tick
The minimum price fluctuation price action can make. In the S&P 500 Eminis the minimum movement is $12.50. So each "tick" is $12.50.
|
