| P & S |
Purchase and sales statement produced by an FCM when any futures contract is offset; which includes all trade data, charges, and any profit or loss, generated by the trade. |
| Paper profit or Loss |
Unrealized profit or loss on existing positions. |
| Par or Par Grade |
Basis grade. |
| Petroleum |
A generic name for naturally occurring and refined hydrocarbon compounds. |
| Pipeline |
A relatively large diameter pipe through which petroleum (both liquids and gases) are transported, via pumping or compression, between geographic locations. |
| Pit (Ring) |
(1.) An area on the floor of a commodity exchange where futures contracts (or options on futures) are traded by the open outcry process. |
| Point and Figure |
A method of charting, prices that has no time component. |
| Point or Tick |
The minimum price fluctuation of a futures contract. The smallest unit of monetary change in a futures price or option premium. |
| Position |
An interest in a market, either long or short. |
| Position Limit |
The maximum number of contracts, futures and/or options, that any one entity can control in any given commodity at any one time. |
| Prearranged Trade |
(1.) Trading between brokers in accordance with an expressed or implied agreement or understanding; a trade executed non competitively in violation of CFTC and exchange rules. (2.) A major CFTC no no. |
| Premium |
(1.) The price of an option at any given point in time. (2.) As used in futures, one month or one commodity trading at a higher price than another month or commodity, e.g., May HU is 16 cents premium to May HO (April ’89). |
| Price Discovery |
The process of determining the price level for a commodity based on supply and demand factors through a process of public open outcry auction. |
| Prompt |
A term used in reference to a timetable for delivery of a physical barrel of crude oil or products. For delivery via pipeline, it’s the next cycle slot. For a waterborne delivery, it’s usually within 24 to 72 hours, unless otherwise stipulated. |
| Pump Over |
An intra- or inter-facility transfer of crude or products in satisfaction of a delivery obligation. |
| Put |
An option which gives that purchaser the right, but not the obligation, to sell the underlying instrument at a fixed price (strike price) for a specific period of time which ends on the expiration date. |
