The hedger always takes a position in the futures market opposite his position in the cash market. Margin A cash amount of funds which must be deposited with the broker for each contract as a guarantee of fulfillment of the futures contract. It is not considered as part payment of purchase. Margin call Request for additional capital because of price movement against futures positions. The nearest active trading month of a futures market.
Offer Indicates a willingness to sell a futures contract at a given price.
Open interest Number of open futures contracts. Refers to unliquidated purchases or sales, but never to their combined total. Price later contract A contract between a buyer and seller where the buyer receives title to a commodity from the seller in return for an option on the seller's part to price the commodity at a later time based on the conditions in the contract. Purchase and sales statement Statement sent by brokerage firm to a customer upon a change in his futures account. Synonymous with the term margin .