- Electrolysis
- A process for purifying metals such as copper or aluminium.
In this section
In this section
- European Option
- An option which in practice is only declared on the expiration date because the underlying metal can only be acquired at that time.
- Expiration Date
- The date at which the buyer's rights under an option contract expire if they have not been declared.
- Forward
- The purchase or sale of metal for delivery at a specified future date.
- FCA (Financial Conduct Authority)
- An independent body which regulates the financial services industry in the UK.
- Futures Contract
- A contract to buy or sell a metal on a certain date in the future at a specified price.
- Give-Ups
- A give-up occurs when a client instructs an executing LME broker to give up an uncleared contract to another of his LME brokers for the purpose of being entered into clearing and eventually settled.
- Good Till Cancelled Order (GTC)
- An order to buy or sell which is valid every market day until it is executed or cancelled by the client.
- Grantor
- The person or firm that sells an option.
- Hedging
- The establishment of a position on a futures market, or by means of options, to reduce or cancel out the risk of another position.
- In Warehouse
- Title to metal sold under LME contracts passes with delivery of the warehouse warrant. LME prices therefore refer to metal lying in LME warehouse.
- In-The-Money
- Refers to a Put Option when its strike price is above the current market price, or a Call Option when its strike price is below the current market price.
- Initial Margin
- The initial outlay of money required to open a futures position.
- Introducing Broker
- An individual who introduces a client to a clearing member of the LME.