Saturday, August 11, 2012

Contract Size, Controlled Account ... - Forex Currency Trading

Contract Size: The actual amount of a commodity or currency trading financial instrument represented in a contract.

Controlled Account: An account for which trading is directed by someone other than the owner. Also called a Managed Account or a Discretionary Account. In general financial companies are managing the accounts on behalf of their clients in the commodity or currency trading markets.

Convergence: The tendency for prices of physicals and futures to approach one another, usually during the delivery month. Also called a ?narrowing of the basis.?

Conversion: A position created by selling a call option, buying a put option, and buying the underlying instrument (for example, a futures contract), where the options have the same strike price and the same expiration.

Source: http://forex-currencytrading.com/contract-size-controlled-account-convergence-conversion/2012/08/10

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