| A | B |
|---|
| CBOT | Chicago Board of Trade |
| CME | Chicago Mercantile Exchange |
| Trades In Grains | CBOT |
| Trades in Livestock | CME |
| Cash market | Where products are traded directly for cash or services |
| Futures Markets | Regulated contracts traded with exact size and quality specifiications |
| Margin | The amount of money needed to gain control of a futures contract |
| Maintenance Margin | Minimum amount of margin value that must be mainteined |
| Broker | Person who actually trades on Futures Market floor |
| Brokerage Fee | The amount paid to the broker for his services |
| Margin Call | Money deposited when Margin Value drops below Maintenance Margin |
| Speculating | Using Futures Markets to make money with out intent to raise or use the commodity |
| Hedging | Used by farmers, elevators, processors to reduce price risk |
| Basis | The difference in price between the futures and cash |
| High | The high price for the day on the futures market |
| Low | The low price for the day on the futures market |
| Open | The price of the first trade of the day on the futures market |
| Last | The price of the last trade of the day on the futures market |
| Close | Figured after the session after disputes are settled |
| Floor | Where the trades actually take place |
| eCBOT | Electronic trading over night |
| 5000 bushel | Size of grain Contracts on CBOT |
| 100 Ton | Size of SBM contract |
| Trading month | The month of the contract you are trading. |
| New crop sobeans | After Oct 1 |
| New Crop corn | After Nov 1 |
| Tick Size | The minimum price change for a commmodity |
| Daily Trading Limit | The maximum amount a commodity can change in one day |
