| Scale Order (up or down) |
A series of limit orders entered as one order to sell (scale up) or buy (scale down) a specified quantity of futures at a number of different prices. |
| Scalpers |
A floor trader (local) who buys and sells rapidly, with small profits and losses, holding each position for a short time during the trading session. Scalping is a market maker technique and is a form of speculation available only to a local. |
| Series (of Options) |
All the options of a given class (either puts or calls), having the same strike price and expiration date. |
| Settlement |
The act of fulfilling the delivery requirements of a futures contract. |
| Settlement Price |
The final price determined from the closing range established on the close for both futures and options. The settlement price is used as the basis for the mark-to-market calculations necessary for proper margining and invoice prices for deliveries. |
| Short |
(1.) The selling side of futures contract. (2.) The writer or grantor of an option. (3.) The holder of a short position in the market. |
| Sour/Sweet (Crude Oil or Natural Gas) |
Petroleum industry terms describing the relative degree of sulphur content in either crude oil or natural gas. Relatively high sulphur content is referred to as “sour,” low content as “sweet.” |
| Specific Gravity |
The ration of the weight density of a substance divided by the weight density of a substance divided by the weight density of pure water at 0 degrees centigrade. Weight density is defined as the weight pre unit volume of a substance. |
| Specific Gravity |
weight density of a substance, Weight density of pure water |
| Speculator |
An entity which trades futures and options (as well as anything else that can be bought and sold) with the goal of achieving profits through the successful anticipation of price movements. |
| Spot |
(1.) Market of immediate delivery of and immediate payment for a physical (cash) commodity. Also known as the cash market. (2.) A one time open market transaction where the product is transferred immediately between buyer and seller, in contrast to a term sale which occurs over a period of time. |
| Spot Month |
Current delivery month. The nearby month. |
| Spread (Straddle/Switch) |
(1.) Futures the simultaneous purchase of one futures contract and the sale of a different futures contract. Spreads are also called straddles and switches and come in many form as defined and described in the text. (2.) Options - the purchase and sale of two options of the same type (puts or calls) which vary in terms of strike prices and/or expiration dates. |
| SRO |
Self Regulatory Organization. The CFTC term for designated contract market or exchange. |
| Stop Order |
An order that becomes a market order when the stop price is traded in the ring or pit. A stop to buy is placed above market, a stop to sell is placed below the Markey. Also called a stop loss order and can be modified to be a stop limit order. Stop orders are used to (1) limit losses, (2.) protect profits, or (3) automatically enter or exit the market at some pre-determined price. |
| Straddle |
See spread. |
| Strangle |
(1.) An option position consisting of the purchase or sale of put and call options having the same expiration date, but different strike prices. (2.) A process used to thin out the ranks of incompetent brokers. |
| Street Book |
A daily record kept by FCM’s, clearing members, and exchange showing the details of each and every futures transaction, including the customer for whom the trade was made. When used as “The Street Book,” the term refers to the records produced by the exchange and its clearing house. |
| Strike Price |
The price at which an option may be exercised. Also called exercise price. |
| Switch |
(1.) A rollover. (2.) A New York futures term for spread or straddle. |
| Synthetic Futures |
A position created by combining call and put options. A synthetic long futures is composed of a long call and short put (same expiration and strike); a synthetic short futures is composed of a long put and short call (same expiration and strike). |
