Glossary

This is a list of definitions of terms used throughout this website.

Broker Assisted

The account owner makes all trading decisions for a given account with the assistance of a Broker. The account owner must authorize each and every transaction prior to a trade being entered.

Cash, Cash Account

All trading conducted on a non-leveraged basis, i.e. the Client must settle each transaction in full and must have any instrument sold on deposit in his/her account prior to entering into the sale.

Commercial Hedger

A trader who enters into a transaction looking to either acquire or dispose of a specific instrument or commodity or to "hedge" i.e. protect himself/herself from an adverse price move in a specific instrument or commodity. Hedge Accounts generally have lower Margin requirements if they are trading on margin.

Fully Managed

The account owner (by executing a Written Power of Attorney) has granted a third party trading authority over his/her account. By granting POA over an account the Trading Manager does not have to consult with the account owner prior to entering trades for a given account.

Margin, Margin Account (includes Short Sales and Options Trades)

All trading conducted on a leverage basis, i.e. the client is required to enter into a Margin Loan or to deposit a "Good Faith Deposit" to conduct trading. In a Margin Transaction the risk of loss and/or profit is amplified as the trader controls a larger quantity of a specific financial instrument than he would in a Cash Transaction.

Physical Delivery Client

A trader who enters into a transaction with the intention of taking physical possession or making physical delivery of the specific instrument or commodity bought or sold.

Self-Directed

The account owner or his direct employee(s) make all of the trading decisions independently for a given account.

Speculator

A trader who enters into a transaction looking to profit from a favorable change in the market price rather than from a need to acquire the instrument or commodity purchased/sold for a commercial use.