In this section

In this section

Lakh
A word of Indian etymology meaning 100,000.
Lending
This means lending metal to the market, or in other words, selling metal at a nearby date and simultaneously buying it back on a date further forward.
Limit Order
An order placed by a client to buy or sell at a specified price.
Long
An open purchased futures position.
Lot
The minimum amount of a commodity which can be traded on a futures market. At the LME a lot is often called a warrant or contract.
Mark To Market
Evaluating an open position on the basis of current market price, usually to assess the need for a variation margin.
Market Order
An order to buy or sell a futures contract at the first obtainable price or prices on the market for the tonnage involved.
Maturity
A forward futures contract reaches maturity when its date becomes the prompt position.
Min-Max
An option strategy involving selling an option to fund the purchase of an opposite option.
NASAAC
Abbreviation for North American Special Aluminium Alloy, which is traded on the London Metal Exchange.
Nearby
A date or contract that is relatively close to the cash / spot / expiry date.
NYMEX
The New York Mercantile Exchange, on which Platinum and Palladium are traded on a monthly contract basis.
Offer
The price the seller asks for a commodity.
Open Interest
The total of all positions that have not yet been closed out on a futures market.
Open Outcry
The method of communication used by Ring Dealing Members at the LME, using shouting and hand signals.
Open Position
A forward market position, which has not been closed out.
Option
An option is a contract which gives the buyer the right but not the obligation for a specified period of time to buy from (Call) or sell to (Put) the grantor a specified quantity of metal at a specified strike price on a specified delivery date in return for payment of a negotiated premium.
Option Spread
The simultaneous purchase and sale of a pair of Call Options or Put Options, in the same metal but at different strike prices or different expiration dates, or both.
Out-Of-The-Money
Refers to a Call Option when its strike price is above the current market price, or a Put Option when its strike price is below the current market price.