Extended yield is the income from adjusting a futures position from one futures contract to a longer-term contract.
Positive roll returns exist when the futures market is in backwardation, which happens when short-term contracts trade at a premium compared to longer-term contracts.
When the market is in contango, long-term contracts are more expensive than short-term contracts, and the roll yield will be negative.
Futures contracts are financial derivatives that oblige the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined price and date in the future.
A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates.
centner (abbreviated as CWT) is a standard unit of weight or mass used in some commodity markets. It can also be used to determine the price of small batches of goods.
Tick size - the minimum change in the price increment of a trading instrument.
– Tick sizes used to be in fractions (e.g. 1/16th of $1), but today they are mostly decimal based and expressed in cents.