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Glossary of Futures Trading Terms

Terms beginning with 0-9 Terms beginning with A Terms beginning with B Terms beginning with C Terms beginning with D Terms beginning with E Terms beginning with F Terms beginning with G Terms beginning with H Terms beginning with I Terms beginning with J Terms beginning with K Terms beginning with L Terms beginning with M Terms beginning with N Terms beginning with O Terms beginning with P Terms beginning with Q Terms beginning with R Terms beginning with S Terms beginning with T Terms beginning with U Terms beginning with V Terms beginning with W X Terms beginning with Y Z

Glossary terms beginning with F

Floor Broker
An individual who executes orders on the trading floor of an exchange for any other person or entity.
Floor Traders
Members of an exchange who are personally present, on the trading floors of the exchanges, to make trades for themselves.
Floor
(1) The lowest rate a financial market is allowed to fall. (2) The trading floor of an exchange.
Forward market
A market for foreign exchange involving delivery of currency at some date in the future.
Forward points
The difference between the spot rate and the forward rate for a specific foreign currency, measured in pips.
Forward premium
The difference between the higher forward and the lower spot price of a currency expressed as an annualized percentage.
Forward rate
An exchange rate for delivery on a date later than spot date.
Forward spread
The premium or discount of forward (i.e. future) foreign exchange swap contracts and the forward spot rates.
Forward trading
Trading, in which actual delivery and settlement is made at a future date. Forward trade occurs in the commodity, foreign exchange, stock, bond and futures markets.
Full-service brokers
Brokers who execute buy and sell orders, research investments, help investors develop and meet investment goals and give advice to investors. They charge commissions for their work.
Fully Disclosed
An account carried by the Futures Commission Merchant or other financial institution in the actual name of the individual customer; it is the opposite of an omnibus account.
Fundamental Analysis
An approach to the analysis of markets which examines the underlying factors which will affect the supply and demand of the market, overall economy, industry conditions, etc. (See also Technical Analysis.)
Futures Commission Merchant (FCM)
An individual or organization which solicits or accepts orders to buy or sell futures contracts or commodity options and accepts money or other assets from customers in connection with such orders. The individual or organization must be registered with the Commodity Futures Trading commission.
Futures Contract
A standardized binding agreement to buy or sell a specified quantity or grade of a commodity at a later date, i.e., during a specified month. Futures contracts are freely transferable and can be traded only by public auction on designated exchanges.
First Notice Day
First day on which notices of intention to deliver cash commodities against futures contracts can be presented by sellers and received by buyers through the exchange clearinghouse.
Futures
A term used to designate all contracts covering the purchase and sale of financial instruments or physical commodities for future delivery on a commodity futures exchange.
Face Value
The dollar value of a U.S. Treasury Bill at maturity. T-Bills are issued at a discount to face value and gradually increase in value until reaching the full face value on the maturity date.
Fair Value
When the market price of an option is in line with its theoretical value as predicted by a formula such as Black-Scholes.
Fast Market
A market in which the bids and offers change so quickly that the difference between what is quoted and where a trade actually takes place may be significant. In a fast market, it often happens that customers don't get filled on orders where they might expect. When this occurs during a fast market, brokers generally can't be held responsible.
Federal funds rate
The interest rate that is charged by banks on overnight loans to other banks.
FINRA
The Financial Industry Regulatory Authority (Formerly referred to as NASD), is the largest non-governmental regulator for all securities firms doing business in the United States.
Foreign Exchange
The foreign exchange market. This is the cash market for foreign currencies. Trade does not occur on centralized contract markets but rather, over-the-counter in an international network of dealers.
Fund Assets
Amount of assets currently in the fund.
Funds Available to Withdraw
Estimated based on cash available and for margin accounts, it is based on the leverage from your current marginable securities. Requests to withdraw funds may be effected by the pricing of positions and the settlement of transactions. Withdrawal is subject to approval and may be delayed or refused due to the processing of trades, other withdrawals or position risk.
Fungibility
The ability to trade the same instrument interchangeably across exchanges or other marketplaces.
FOK (Fill or Kill)
FOK (Fill or Kill) When an order is given to a broker that must immediately be filled in its entirety or, if this is not possible, totally canceled.

The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.

Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.

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