Warehouse Financing

• E-mini are futures contracts traded electronically, the value of which is a fraction of the value of the corresponding standard futures contracts.

• Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity markets and exchanges.

• A job lot is a futures contract, the par value of which is less than a standard lot.

• The resource curse refers to countries that lag behind economically despite benefiting from valuable natural resources.

• A variable price cap is a method of controlling volatility in commodity futures exchanges.

• Agribusiness is a combination of the words “agriculture” and “business” and refers to any business related to agriculture and commercial activities related to agriculture.

• Backwardation is when the current price of the underlying asset is higher than the prices traded in the futures market.

• Buying on margin means you are investing borrowed money.

• Cheapest delivery is the cheapest security that can be long in a futures contract to meet the contract specifications.

• Contango is a situation where the futures price of a commodity is higher than the spot price.

• A Contract for Difference (CFD) is a financial contract that pays for the difference in settlement price between an open and a closed trade.

• Futures to Physical Exchange (EFP) allows one party to exchange a futures contract for the actual underlying asset.

• A trader on the trading floor is a member of the exchange who makes transactions on the trading floor of the exchange solely at his own expense.

• 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 futures market is an exchange where futures contracts are traded by participants interested in buying or selling these derivatives.

• The S&P GSCI is a benchmark commodity index that tracks the performance of the global commodity market.

Gemology is the science of identifying gemstones.#

• The gold standard is a monetary system backed by the value of physical gold.

• Gross Processing Margin (GPM) is the difference between the cost of a commodity and the revenue generated after the commodity has been sold as a finished product.

• In the financial arena, the term hardening is commonly used to refer to a period of rising prices and decreasing volatility, especially in commodity trading.

Accumulation is the purchase of a large quantity of a commodity by a speculator with the intention of capitalizing on future price increases.#

• 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.

• Initial margin is the percentage of the purchase price that must be paid in cash when using a margin account.

• An introducing broker (IB) advises clients on the futures market, but delegates trade execution and back office operations to others.