Extension

 

Date of this Version

1985

Comments

© 1985, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–Lincoln Extension. All rights reserved.

Abstract

This publication, the first of six NebGuides on agricultural grain options, defines many of the terms commonly used in futures trading.

In order to properly understand examples and literature on options trading, it is imperative the reader understand the terminology used in trading grain options. The following list also includes terms commonly used in futures trading. These terms are included because the option is traded on an underlying futures contract position. It is an option on the futures market, not on the physical commodity itself. Therefore, a producer also needs a basic understanding of the futures market.

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