Commodity Glossary | Forex, Pakistan Pakistan Forex Rate - Prize Bond Draw Result - Pakistan Open Market Rates, forex currency rates, Forex Rates, Exchange Rate, Gold rate, Currency Rates, International Rates, Get forex conversion rate from PKR to GBP, USD, Euro. http://www.forexpk.com/glossaries/commodity-glossary/ Wed, 24 May 2017 04:18:35 +0000 Joomla! 1.5 - Open Source Content Management en-gb Commodity glossary A http://www.forexpk.com/glossaries/commodity-glossary/a.html http://www.forexpk.com/glossaries/commodity-glossary/a.html

    ACCELERATED SUPPLY

  • Gold reaching the market through mine hedging and finance transactions before it is physically produced - generally created by producer hedging or finance transactions
  • ACCOMMODATION TRADING

  • Non-competitive trading entered into by a trader, usually to assist another with illegal trades.
  • ALIQUOT

  • A small representative sample taken from a gold bar for assay to determine its fine gold content.
  • ALLOCATED ACCOUNT

  • An account in which the client's metal is individually identified as his, and physically segregated from all the other gold in the vault; in the event of a default by the holding bank, the investor becomes a secured creditor.
  • ALLOY

  • A mixture of two or more chemical elements, including at least one metals. In the ase of gold, it is mixed with a baser metal or metals to lower the purity, influence the colour or add durability."
  • AMALGAM

  • A mixture with mercury and silver, gold, copper or another metal, known since classical times. A major use is in dentistry
  • AMERICAN-STYLE OPTION

  • An option which can be exercised at any stage during its life, at or before expiration date
  • ANODES

  • Positively polarised electrodes in an electrolytic cell; copper content about 99.5%.
  • ANODE SLIMES

  • A product of the copper tankhouse which settles on the bottom of an electrolytic cell as the copper anodes dissolve and which also adheres to the remains of the anodes. The precious and non-soluble components of the anode are enriched in the anode slimes (e.g. silver, gold, selenium, lead).
  • ARBITRAGE

  • The purchase/sale of a contract on a market and the simultaneous taking of an equal and opposite position, usually on another market, to profit from discrepancies in the price and/or currencies involved."
  • ASIAN-STYLE OPTION

  • An option which, if it expires in-the-money, is automatically settled on the basis of the difference between the strike price and the average price of the underlying asset in a given period prior to expiration."
  • ASK

  • The price a seller asks for the commodity. (also see "offer")
  • ASSAY

  • The testing and evaluation of a metal to determine its fineness or purity. There are often minimum standards that must be met.
  • ASSAYER

  • A tester of precious metals to determine their purity.
  • ASSAY MARK

  • The stamp by an assayer on a bar or piece of precious metal to guarantee its fineness
  • AT-THE-MONEY

  • Refers to an option in which the strike price which is equal to the current market price of the underlying asset.
  • AVERAGE STRIKE OPTIONS

  • Asian-style options where the ultimate settlement depends on an average strike price rather than an average underlying asset price.
  • AVERAGING

  • A method whereby a smoothing of the fluctuations in price movements may be achieved by agreeing to buy or sell a specified total quantity of gold or silver on the basis of the average price of the gold or silver fixings over an agreed period of time.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:48:59 +0000
Commodity glossary B http://www.forexpk.com/glossaries/commodity-glossary/b.html http://www.forexpk.com/glossaries/commodity-glossary/b.html

    BACKWARDATION

  • When the price for immediate delivery of a commodity is higher than the price of delivery for a future date.
  • BASE METAL

  • Non-ferrous metal, excluding precious metals (See www.basemetals.com for detailed up-to-date news on all base metals)
  • BARRIER OPTION

  • An exotic option that either comes to life (is knocked-in) or is extinguished (knocked-out) under conditions stipulated in the options contract. The conditions are usually defined in terms of a price level (barrier, knock-out or knock-in price) that may be reached at any time during the lifetime of the option. There are four major types of barrier options: up-and-out, up-and-in, down-and-out and down-and-in. The extinguishing or activating features of these options mean they are usually cheaper than ordinary options, making them attractive to purchasers looking to avoid high premium.
  • BASIS PRICE

  • The reference price used for establishing a physical contract. In option trading it is the price agreed for the underlying should an option be declared, more commonly referred to as the strike price or exercise price.
  • BE COPPER

  • Best electrolytic copper; features particular electrical conductivity, good brazing properties and excellent hydrogen resistance.
  • BLISTER COPPER

  • Unrefined porous copper. Molten copper absorbs gases more easily than copper in solid form. During solidification, dissolved gases in such copper form small blisters in the copper.
  • BEAR

  • Someone who anticipates that prices will fall.
  • BEAR CALL SPREAD

  • The purchase and sale of call options at different exercise prices but with the same expiry date. The purchased (or long) calls have a higher exercise price than the written (or short) calls. The investor expects a fall in the price of the underlying asset.
  • BEAR MARKET

  • A market in which the trend is for prices to decline.
  • BEAR PUT SPREAD

  • The purchase and sale of put options at different exercise prices but with the same expiry date. The puts purchased have a higher exercise price than the puts written. The investor expects a fall in the price of the underlying asset.
  • BETA

  • The beta of a rate or price is the extent to which that rate or price follows movements in the overall market. If the beta is greater than one, it is more volatile than the market; if the beta is less than one, it is less volatile.
  • BID

  • The price at which a dealer is willing to buy.
  • BLACK-SCHOLES MODEL

  • An option-pricing model initially derived by Fischer Black and Myron Scholes in 1973 for securities options and later refined by Black in 1976 for options on futures.
  • BLAST FURNACE

  • A furnace where mixed charges of oxide or sulfide ores (copper, iron, lead, tin, etc.), fluxes and fuels are blown with a continuous blast of hot air and sometimes oxygen-enriched air to force combustion for the chemical reduction of ores with metals to their metallic states.
  • BORROWING

  • One form of carry. In this case the simultaneous buying of metal for a near dated prompt and the selling of that metal for a later dated prompt. In effect the party is borrowing the metal for the period.
  • BROKER

  • One form of carry. In this case the simultaneous buying of metal for a near dated prompt and the selling of that metal for a later dated prompt. In effect the party is borrowing the metal for the period.
  • BULL

  • Someone who anticipates that prices will rise.
  • BULL CALL SPREAD

  • The purchase and sale of call options at different exercise prices but with the same expiry date. The purchased (or long) calls have a lower price than the written (or short) calls. The investor expects a rise in the price of the underlying asset.
  • BULL MARKET

  • A market in which the trend is for prices to increase.
  • BULLION

  • The generic word for gold and silver in bar or ingot form. Originally meant ‘mint’ or ‘melting place’ from the old French word bouillon, which means boiling.
  • BULL PUT SPREAD

  • The purchase and sale of put options at different exercise prices but with the same expiry date. The puts purchased have a lower exercise price than the puts written. The investor expects the price of the underlying asset to rise.
  • BUTTERFLY SPREAD

  • The simultaneous purchase of an out-of-the-money strangle and sale of an at-the-money-straddle. The buyer profits if the underlying remains stable and has limited risk in the event of a large move in either direction.
  • BUY

  • To place an opening trade at the offer price of a spread in anticipation of the underlying market rising, commonly referred to as an "up trade", "taking a long position", or "going long". You can also buy at the offer price to close an existing short position.
  • BUY SIGNAL

  • In technical analysis, a chart pattern which indicates a key reversal upwards in price and the time to buy.
  • BY-PRODUCT

  • Material of some economic value produced in a process which is focused on extracting another material. For example palladium is produced as a by-product of platinum mining in South Africa.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:47:27 +0000
Commodity glossary C http://www.forexpk.com/glossaries/commodity-glossary/c.html http://www.forexpk.com/glossaries/commodity-glossary/c.html

    C & F

  • Cost and freight, whereby the quoted price for physical material includes all costs incurred in shipping the metal to the customer’s location but not including insurance.
  • CEILING

  •  
  • CBOT

  • Chicago Board of Trade (CBOT). An exchange where grain, gold, and Treasury Bond futures and options are traded.
  • CIF

  • Cost, insurance and freight, whereby the quoted price for physical material includes all costs incurred in shipping the metal to the customer’s location including insurance.
  • CALENDAR SPREAD

  • The simultaneous purchase and sale (or vice versa) of an option of the same strike for different months.
  • CALL OPTION

  • A contract that gives the holder the right, but not the obligation, to buy metal futures at a set price (the strike price) on a given date.
  • CARRY

  • The simultaneous purchase and sale of the same tonnage of the same metal for delivery on different dates. See "borrowing" and "lending".
  • CASH PRICE

  • The current price in the market for cash/spot contracts.
  • CATALYST

  • Catalysts are substances which through their presence influence (increase) the process rates of chemical reactions and after completion of the reaction are still in an unchanged form. In theory, a catalyst is not consumed.
  • CATHODE

  • The negative pole in electrolysis.
  • CEILING

  • A recognised high point in market prices. This may be a point the market does not expect the price to exceed, the highest price achieved before the market declines or a level set by a customer as a maximum price to be paid.
  • CFTC

  • Commodity Futures Trading Commission, the regulatory body in the US covering futures markets
  • CLIENT CONTRACT

  • A contract between a broker member and its customer.
  • CLEARING

  • The process of registering and guaranteeing the financial settlement of futures and options transactions and the settling of differences between clearing members.
  • CLOSE (OUT)

  • To undertake an opposite position, i.e. if the initial transaction was a purchase, the closing out activity is to sell the same tonnage for the same prompt date."
  • AMALGAM

  • A mixture with mercury and silver, gold, copper or another metal, known since classical times. A major use is in dentistry
  • COMEX

  • The New York Commodity Exchange, now a division of NYMEX, the New York Mercantile Exchange. The contracts in the COMEX gold market consist of 100 ounces each, and the actively traded contracts are the even months of the year.
  • COMMERCIAL SILVER

  • Silver that is .999 fine (99.9%) or higher, usually sold and shipped in 1000 oz. bars
  • COMMISSION

  • Fee charged by a broker for executing an order
  • COMMODITY

  • Raw materials that can be bought and sold.
  • CONCENTRATING

  • The process of separating milled ore into two streams; one greatly enriched in the valuable mineral (concentrate) and another of waste material (tailings). Concentration is a vital economic step in the production process because it reduces the volume of material which must be transported to and processed in a smelter and refinery.
  • CONSIGNMENT STOCKS

  • A bullion dealer may hold gold on consignment at a client's premises. It is the dealer's property until the client withdraws it and pays the prevailing price. Alternatively, it may be held by the dealer at local banks until the clients come forward to purchase and take delivery.
  • CONSUMER'S HEDGE

  • The purchase of futures or options on futures or both as protection against a rise in raw material prices
  • CONVERTER

  • Market situation when a nearby price is lower than a further forward price.
  • COPPER CONCENTRATE

  • A product resulting from the processing (enriching) of copper ore
  • CORNER

  • When one operator owns or controls an excessive amount of stocks enabling them to control the supply of material and in consequence to control the price.
  • COVER

  • To sell a long position, or buy back a short position."
  • CROSS TRADE

  • A trade between a broker and its customer, which is not revealed to the rest of the market but for registration purposes it is entered in the matching process by the clearing member as a buy and sell contract to and from itself.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:46:44 +0000
Commodity glossary D http://www.forexpk.com/glossaries/commodity-glossary/d.html http://www.forexpk.com/glossaries/commodity-glossary/d.html

    DAILY PRICE LIMIT

  • The maximum price, increase/decrease, permitted from the previous day's settlement price.
  • DAY ORDER 

  • An order to buy or sell at a particular price level which is only valid for one business day
  • DAY ORDER 

  • An order to buy or sell at a particular price level which is only valid for one business day
  • DECLARATION DATE

  • The last date on which the holder of an option may advise the grantor of his intention to exercise the option.
  • DEFERRED SETTLEMENT

  • A situation in which the settlement of a bullion market contract is deferred by mutual agreement on a daily basis.
  • DELTA

  • The rate of change to the premium of an option as the underlying price changes.
  • DELTA HEDGING 

  • A strategy undertaken by granters of options to protect their exposure. A delta hedge calculation takes into account changes in the spot price, the time to expiry and the difference between the strike and spot prices."
  • DERIVATIVE

  • The collective term for a future or call or a put option the price of which is derived form the value of the underlying metal.
  • DISSEMINATED

  • Term applied to ore deposits consisting of fine grains of ore mineral dispersed through the host rock
  • DIVIDEND

  • A cash bonus or other distribution made by a company to its shareholders and applicable to every share that they hold in relation to that company. Spread bets in relation to individual equities do not qualify for dividends.
  • DGCX

  • Dubai Gold and Commodities Exchange
  • DORE

  • A gold-silver alloy, an intermediate product from certain gold mines."
  • DOUBLE BOTTOM/DOUBLE TOP

  • In technical analysis, a double bottom occurs when the price falls to the same level twice and fails to penetrate. This signals good support. A double top is the opposite, ie, when a price rises to the same level twice and fails to break above it, and therefore produces a level of good resistance."
  • DOWN TRADE

  • See "sell"
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:45:43 +0000
Commodity glossary E http://www.forexpk.com/glossaries/commodity-glossary/e.html http://www.forexpk.com/glossaries/commodity-glossary/e.html

    EFP

  • Exchange For Physical. Actual exchange between an OTC contract and a futures contract which takes place off exchange between parties.
  • EUROPEAN-STYLE OPTION

  • An option that can only be exercised on the expiry date
  • EXCHANGE TRADED OPTIONS 

  • Options on future contracts offered by a recognised futures exchange, such as NYMEX.
  • EXERCISE 

  • The initiation of the right to buy (call) or sell (put) an asset by the option holder at the agreed strike price
  • EXERCISE PRICE (STRIKE)

  • See "sell"
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:24:03 +0000
Commodity glossary F http://www.forexpk.com/glossaries/commodity-glossary/f.html http://www.forexpk.com/glossaries/commodity-glossary/f.html

    FABRICATOR

  • A company that processes refined (cathodes, ingots, billet etc) or semi-fabricated (extrusions, sheet metal etc) metal to produce products for sale to end consumers.
  • FACE VALUE

  • The nominal value given to legal tender coin or currency
  • FAIR VALUE 

  • The theoretical price at which a futures contract would be expected to trade
  • FINENESS 

  • The proportion of precious metal in an alloy expressed as parts in 1,000; thus 995 or two nines five is 995/1000 or 99.5% pure
  • FINE WEIGHT 

  • The weight of gold contained in a bar, coin or bullion as determined by multiplying the gross weight by the fineness.
  • FIX

  • The London gold fixing takes place twice daily (10.30 am and 3.00 pm) over the telephone and sets a price at which all known orders to buy and sell gold on a spot basis at the time of the fix can be settled. The fix is widely used as the benchmark for spot transactions throughout the market.
  • FLAG

  • In technical analysis, one of the basic chart patterns. In a bull market a flag occurs when prices consolidate for a period then continue to rise. In a bear market the converse occurs, ie, prices resume falling after a period of consolidation.
  • FLAT RATE FORWARDS 

  • Forward contracts offering a constant contango throughout the life of the contract
  • FLOAT/ FLOTATION

  • The first public offering of a company's shares or securities on a regulated exchange.
  • FLOOR

  • A recognised low point in market prices. This may be a point the market does not expect the price to fall below, the lowest price achieved before the market rises or a level set by a customer as a minimum selling price.
  • FOB

  • Free on Board. A FOB price usually includes cost of transport, insurance and loading onto a vessel at the port of departure."
  • FORWARD PREMIUM

  • The difference between spot and forward quotations which will be determined by money and precious metal interest rates and storage charges
  • FORWARD TRANSACTION

  • Purchase or sale for delivery and payment at an agreed date in the future
  • FUNDAMENTAL ANALYSIS 

  • The study of basic underlying factors which will affect the supply and demand of the commodity being traded.
  • FUTURES CONTRACT

  • An agreement to buy or sell a specific commodity or financial instrument on a set date in the future at a set price.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:23:31 +0000
Commodity glossary G http://www.forexpk.com/glossaries/commodity-glossary/g.html http://www.forexpk.com/glossaries/commodity-glossary/g.html

    GAMMA 

  • The sensitivity of an option's delta to changes in the price of the underlying instrument
  • GAP THROUGH

  • When a market opens or trades through the specified level of a market order without actually trading at the price of the market order.
  • GOFO 

  • Gold Forward Offered Rate. The gold equivalent to LIBOR. The rates at which dealers will lend gold on swap against US dollars.
  • GOLD LOAN 

  • A financing mechanism whereby gold is borrowed from a bullion bank (which has usually borrowed it from a central bank or banks), and sold into the market to raise cash, usually to finance a gold mining operation. The metal is then repaid over an agreed period of time. The interest on the loan is usually paid either in dollars or in gold subject to the agreement between the counter-parties.
  • GOLD WARRANT

  • 1.A recognised low point in market prices. This may be a point the market does not expect the price to fall below, the lowest price achieved before the market rises or a level set by a customer as a minimum selling price. A certificate often issued by exchanges indicating ownership of physical metal.
  • GOOD DELIVERY BARS

  • Also referred to as large bars, the ingots that conform to London Good Delivery standard
  • GOOD DELIVERY STANDARD

  • The specification to which a gold bar must conform in order to be acceptable on a certain market or exchange. Good delivery for the London Bullion Market is the internationally accredited good delivery standard.
  • GRADE

  • The mass of desired metal(s) in a given mass of ore.
  • GRAIN 

  • One of the earliest units of weight for gold. 1 grain = 0.0648 grams or 0.002083 troy ounces. 15.43 grains = 1 gram; 480.6 grains = 1 troy ounce; 24 grains = 1 pennyweight.
  • GTC (GOOD 'TIL CANCELLED)

  • Applicable to market orders, it signifies that the order will be open and carried forward indefinitely until it is either filled or cancelled by the client.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:22:50 +0000
Commodity glossary H http://www.forexpk.com/glossaries/commodity-glossary/h.html http://www.forexpk.com/glossaries/commodity-glossary/h.html

    HAIRCUT 

  • In computing the value of assets for purposes of capital, segregation, or margin requirements, a percentage reduction from the stated value (e.g., book value or market value) to account for possible declines in value that may occur before assets can be liquidated.
  • HALLMARK  

  • A mark or number of marks made on gold or silver jewellery and other fabricated products to confirm that the quality is of the carat fineness marked on the item.
  • HEAD AND SHOULDERS

  • A three-peak pattern resembling the head and shoulders outline of a person, which is used to chart stock and commodity price trends. The pattern indicates the reversal of a trend. As prices move down to the right shoulder, a head and shoulders top is formed, meaning that prices should be falling. A reverse head and shoulders pattern has the head formation at the bottom of the chart and means that prices should be rising.
  • HEDGE 

  • A transaction entered into in order to offset the impact of adverse price movements of an asset.
  • HIGH GRADE

  • The best or richest ore in a deposit.
  • HOLDER

  • The buyer of an option, more commonly referred to as the taker.
  • HOUSE ACCOUNT 

  • An account designated for the brokers own transactions.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:22:23 +0000
Commodity glossary I http://www.forexpk.com/glossaries/commodity-glossary/i.html http://www.forexpk.com/glossaries/commodity-glossary/i.html

    IN-THE-MONEY

  • A term used to describe an option contract that is showing a profit.
  • INGOT 

  • A form of metal bar, often a preferred form for delivery. Derived from casting into a simple shape for hot working or remelting.
  • INITIAL DEPOSIT/MARGIN

  • Funds put up as security for the guarantee of the contract fulfilment at the beginning of a futures or options contract.
  • INTEGRATED PRODUCER

  • A producer who also owns the smelting and semi-fabricating facilities.
  • INTEREST YIELD 

  • In the context of the LME, interest yield refers to the profit earned by borrowing metal in a contango market, sometimes giving the user a greater return than is available from the current interest rate on money.
  • INTRINSIC VALUE 

  • An account designated for the brokers own transactions.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:21:41 +0000
Commodity glossary J http://www.forexpk.com/glossaries/commodity-glossary/j.html http://www.forexpk.com/glossaries/commodity-glossary/j.html

    JOINT VENTURE 

  • A contractual agreement between two or more parties for the purpose of executing a business undertaking. All parties agree to share in the profits and losses of the enterprise.
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gm@kalpoint.com (Administrator) Commodity Glossary Mon, 18 May 2009 09:21:06 +0000