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Glossary of Terms
As the commerce and industry have evolved, each sector has developed a vocabulary that uniquely describes its products,
technology, and business practices, known as a jargon of respective domain. Often, these words seem incomprehensible to
the layman. This short lexicon is not meant to be a comprehensive dictionary of markets; nevertheless it would be a useful
guide for the beginners who are keen to no more about financial markets and futures industry.
T
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Technical Analysis :-
An approach to forecasting commodity prices
which examines patterns of price change, rates of change, and changes
in trading volume and open interest, without regard to underlying fundamental
market conditions.
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Theoretical Value :-
An option's value generated by a mathematical
model given certain prior assumptions about the term of the option, the
characteristics of the underlying futures contract, and prevailing interest
rates. .
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Tick :-
A minimum change in price, up or down.
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Time Spread :-
The selling of a nearby option and buying
of a more deferred option with the same strike price.
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Time Value :-
Part of the options premium which reflects
the excess over the intrinsic value, or the entire premium if there is
no intrinsic value. At given price levels, the option's time value will
decline until expiration. It is this decrease in time value that makes
options a wasting asset.
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Trade House :-
A firm which deals in the physical commodity.
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Trading :-
buying or selling of stocks, commodities,
bonds, or currency. Normally it is uses in the futures transactions.
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Trading Volume :-
The number of contracts that change hands
during a specified period of time. .
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Trend :-
The general direction of price movement.
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Triangular Flags :-
Chart patterns of the price movement of a
commodity when the market consolidates sideways. The price patterns are
used by technical analysts to try to recognize changes in a price trend.
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Troy Ounce :-
A unit weight, equal to about 1.1 avoirdupois
ounce. The troy ounce is the traditional unit weight for precious metals,
believed to be named after a weight used as the annual fair at Troyes
in France in the Middle Ages. 1 ounce troy = 480 grains = 31.04 grams
1,000 grams = 1 kilogram = 32.15 ounces troy 1,000 kilograms = 1 metric
ton = 32,150 ounces troy
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