| Daily trading limits |
The maximum price range permitted a contract during one trading session. Trading limits are set by the exchange for certain contracts. |
| Day order |
An order that is placed for execution during only one trading session. If the order cannot be executed that day, it is automatically canceled. Order is good from ETH through RTH. |
| Day order - GLOBEX and Open Outcry |
An order which is good for that day's trading session only. If unexecuted at the close of the market, the order is eliminated. Order is good from ETH through RTH. |
| Day trader |
A trader who establishes and liquidates positions within one day's trading, ending the day with no established position in the market. |
| Day trading |
Establishing and offsetting the same market position within the same day. |
| Dealer |
A firm or individual who puts up capital and takes one side of a position, seeking to earn a spread (profit) through closing out the position in another trade with a different party. |
| Debit spread |
An option spread in which there is a net payout of premium. |
| Default |
Failure to perform on a contract as required by exchange rules, such as the failure to meet settlement variation, a performance bond call, or to make or take delivery. |
| Deferred |
See "back months." |
| Deferred pricing agreement |
A cash sale in which the seller delivers a commodity and agrees with the buyer to price it at a later time. |
| Deficit |
A situation in which a country has a negative balance of trade or payments. |
| Degree Day |
Term created to assess and acknowledge expected demand for energy. A degree day value is the difference between a day's average temperature and a previously set temperature (in the U.S., 65 degrees Fahrenheit). Degree days above 65 degrees are called Cooling Degree Days because they are days when people are likely to use energy for air conditioning. Heating Degree Days refer to days when people are likely to use energy for heating. |
| Delivery |
The tender and receipt of the actual commodity, or of a delivery instrument covering the commodity, in settlement of a futures contract. |
| Delivery day |
The calendar date on which a delivery transaction is to be completed. |
| Delivery month |
See "contract month." |
| Delivery month performance bond requirement |
The performance bond requirements applicable to all positions in the delivery month as defined by the CME clearing house. |
| Delivery notice |
The notice that the seller presents to the CME clearing house stating his intention to make delivery against an open short futures position. This notice is separate and distinct from the warehouse receipt or other instruments that will be used to transfer title during the actual delivery. |
| Delivery point |
Those locations designated by the exchange at which actual commodities may be delivered in fulfillment of a futures contract. |
| Delta |
The measure of the price-change relationship between an option and the underlying futures price. Equal to the change in premium divided by the change in futures price. |
| Demand |
The quantity of a commodity that buyers are willing to purchase in the market at a given price. |
| Demand notice |
A notice a firm submits via the Deliveries system requesting assignment of live cattle delivery. The CME clearing house fills these demands to the extent possible, given certificates tendered. If the CME clearing house assigns the demand to a certificate with accrued retender fees, the "demander" collects the retender fee via the CME clearing house. See also Retender. |
| Depository or warehouse receipt |
A document issued by a bank, warehouse or other depository indicating ownership of a stored commodity. |
| Depreciation |
Decline in the value of one currency relative to another. Occurs when, because of a change in exchange rates, a unit of one currency buys fewer units of another currency. |
| Derivative |
An investment tool that is derived from an underlying instrument. An example would be an FX currency futures contract, which trades at CME. |
| Devaluation (of currency) |
A government's reduction of the value of its currency, generally through an official announcement. |
| Deviation |
A noticeable or marked departure from the appropriate norm, plan, standard, procedure, or variable being reviewed. Similar to variance. |
| Direct Quote |
Price of a foreign currency in terms of a country’s domestic currency. |
| Discount broker |
See "broker." |
| Double top, bottom |
A bar chart formation that signals a possible price trend reversal. In a point and figure chart, double tops and bottoms are used for buy and sell signals. |
| Downtrend |
A price trend characterized by a series of lower highs and lower lows. |