A binding agreement to buy/sell an asset at a set price on a future date.
The deposit required to open and hold a futures position.
Using borrowed capital to control a larger position than your cash allows.
The minimum price movement of a futures contract.
The most liquid futures contract tracking the S&P 500 index.
Volume Weighted Average Price — institutional benchmark for intraday trading.
A predefined price level where you exit a losing trade to limit losses.
The decline from a peak account value to a trough — a measure of risk.
Gross profit divided by gross loss. Above 1.5 is generally considered good.
Buying a contract expecting price to rise.
Selling a contract expecting price to fall, profiting on the decline.
Closing a near-expiry contract and reopening in the next expiry period.
Average True Range — measures market volatility over a set period.
Opening Range Breakout — a strategy based on the first period's high/low.
Chicago Mercantile Exchange — the world's largest futures exchange.
A proprietary trading firm that funds traders with their own capital.
