54 terms covering everything from basic contract mechanics to advanced order flow concepts. Click any term for the full breakdown.
54 terms
When futures prices are lower than the spot price. Signals tight supply or strong demand.
The prices buyers and sellers are offering, and the gap between them.
An entry order bundled with a profit target and stop loss that auto-cancel each other.
When futures prices are higher than the spot price. The normal state for most markets.
The standardized terms that define a futures contract: tick size, value, hours, and expiration.
The official closing price used to calculate daily gains, losses, and margin requirements.
Reduced margin for positions opened and closed within the same session. Varies by broker.
The physical or cash settlement process when a futures contract expires.
Net aggressive buying minus selling volume. Shows who's pushing price.
Peak-to-trough decline in account equity. The number that ends trading careers.
Electronically traded, smaller-sized versions of standard index futures (ES, NQ, RTY, YM).
When a contract expires and traders move to the next month. Happens quarterly for indexes.
When your order is executed and you have an open position. As in, 'I got filled at 5200.'
The nearest expiration contract. Most liquid, most traded, and usually the one you want.
A binding agreement to buy or sell an asset at a set price on a future date.
The price difference between one session's close and the next session's open.
CME's electronic overnight trading platform. Lower volume and wider spreads, but always important context.
Using futures to offset risk in an existing position or business exposure.
The price range of the first hour. A Market Profile concept that sets the day's tone.
Controlling large value with a small deposit. Amplifies both gains and losses.
An order at a specific price or better. You control the price but might not get filled.
Circuit breakers that halt trading when price moves too far, too fast.
How easily you can enter and exit without moving the price. Measured by volume and spread.
The standardized quantity one contract represents: 1,000 barrels, $50 times the index, etc.
The deposit required to open and hold a futures position. A performance bond, not a loan.
A demand to deposit more money when your account drops below maintenance margin.
Daily settlement. Gains credited and losses debited from your account every single day.
Buy or sell immediately at the best available price. Guaranteed fill, not guaranteed price.
A framework that organizes price activity by time, revealing value areas and balance zones.
1/10th-size futures (MES, MNQ, MGC). Ideal for learning and small accounts.
The total dollar value a futures contract controls. Usually many multiples of your margin.
One-Cancels-Other. Two orders linked so when one fills, the other auto-cancels.
Total outstanding contracts. Rising OI with rising price means new money entering the trend.
The high-low range of the first 5, 15, or 30 minutes. A key reference for breakout traders.
The depth of market. Shows resting buy and sell orders at each price level in real time.
The price level with the most trading volume. Acts as a magnet for price.
How many contracts to trade based on account size, risk tolerance, and stop distance.
A firm that funds traders with its capital after passing an evaluation. You keep most of the profits.
The main session. 9:30 AM to 4:00 PM ET for equity index futures.
Potential loss vs. potential gain. Determines how often you need to win to be profitable.
Closing an expiring contract and opening the same position in the next contract month.
Trading for small, fast gains with high frequency. Seconds to minutes per trade.
How a contract resolves at expiration. Cash payment or physical delivery of the asset.
The difference between your expected price and your actual fill. Worse in thin markets.
Trading the price difference between two related contracts instead of outright direction.
Triggers a market order when price reaches a level. Used for breakout entries and stop losses.
A stop that triggers a limit order instead of a market order. Price control but fill risk.
Levels where buying or selling pressure has historically concentrated. Where decisions happen.
Holding positions for days to weeks. Wider stops, lower leverage, less screen time.
The minimum price movement. Each product has a different tick size and dollar value per tick.
A stop loss that automatically moves with price to lock in gains as a trade works.
The price range where 70% of volume traded. Market Profile's definition of fair value.
Trading activity shown by price level. High-volume nodes attract, low-volume areas repel.
Volume-Weighted Average Price. The institutional benchmark for fair value during a session.