- Period Pricing
- A contract for physical metal supply over a period (usually a year) in which all elements except price are settled in advance.
In this section
In this section
- Premarket
- Trading over the telephone between brokers before the LME opens for ring dealing.
- Premium
- There are four possible definitions for the word 'premium'.
- Prompt
- For immediate (two day) delivery.
- Prompt Date
- The date on which a metal has to be delivered to fulfil the contract terms.
- Put Option
- An option which gives the buyer the right, but not the obligation, to sell a particular futures contract at a specific strike price for a specific expiration.
- QP (Quotational Period)
- A selected range of dates in respect to an averaging contract.
- RIE
- The acronym for Recognised Investment Exchange as defined in the 1986 Financial Services Act.
- Ring
- This can mean either the five-minute trading period in a single metal on the LME or the circle of seats where the dealing takes place.
- Ring Dealing Member
- An organisation which is a full clearing member of the LME and entitled to deal in the Ring.
- Roll
- To transfer a market position in futures or options to another by a simultaneous purchase and sale.
- Session
- This refers to the morning and afternoon trading sessions at the LME.
- Settlement Price
- The last unfulfilled offer to sell cash at the close of the second morning ring in each metal i.e. the cash seller's price at that close.
- Short
- An open sold position on a futures market.
- Spot Market
- The market for delivery of metal and currency two business days after the transaction date.
- Spot Month
- The first deliverable month for which a quotation is available on a futures market.
- Stop-Loss Order
- An order which becomes a market order to buy only if the market advances to a specified level, or to sell only if the market declines to a specified level.
- Straddle
- The simultaneous purchase or sale of Put and Call Options at the same strike price with the same prompt.
- Strangle
- The simultaneous sale (or purchase) of out-of-the-money calls and out-of-the-money puts for the same date.
- Strike Price
- A series of contractually binding price levels at which an option may be struck.
- Swap
- An agreement between a hedger and a broker or bank to swap a series of forward cash flows based on selling and buying at an agreed pair of prices.
- Switching
- Can refer to the exchange of metal in one warehouse for that in another or the movement out of one futures contract into another, usually further forward.