Bear Spread is the simultaneous sale of a nearby futures contract and purchase of a deferred contract, with the expectation that the nearby contract will lose relative to the deferred. Bull Spread is a simultaneous purchase of a nearby futures contract and sale of a deferred contract, with the expectation that the nearby contract will gain relative to the deferred. Storage Hedge is a short hedge placed following harvest with grain being stored on the farm or in a commercial elevator. Storing the grain allows the producer to take advantage of strengthening basis, should it occur, while the short hedge locks in a general price level and reduces price risk. Technical Correction is a price change against the trend.
Volume is the total number of contracts traded during a given day.
Making a Trade At the Market is a term that instructs the broker to execute an order immediately at the current price at which the commodity is trading when the order enters the pit. It is also referred to as a Market Order. Limited Order is an order to which there is some restriction attached as to the time or price for execution of the order. Stop-Loss Order is an attempt to limit market risk by placing a liquidation order to be executed if the price moves to a designated level. A margin deposit is not a down payment, but rather a performance bond.